Despite the decline in US bond yields due to safe-haven purchases, the price of gold fell back to a three-month low. This trend highlights market concerns: the sharp decline in large technology stocks may trigger cross-asset rotation, compounding position adjustments at the end of the month with the upcoming midterm elections, and the situation is getting more attention. At least this phenomenon confirms that risk sentiment is weakening — with the exception of crude oil and bonds, all types of assets are generally weakening. As Simon White pointed out, hedge funds will instead short the index to hedge losses caused by falling AI long positions, which may further amplify this market. Nasdaq 100 futures show that the index may have been unable to avoid closing down for three consecutive weeks for the first time since March. If this week finally closes down, the magnitude of the shock may be greater than the fluctuations the Asian market has just experienced when the US investors are about to close in October.

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