NAGA Group flags risk of deeper stock correction as AI spending concerns mount
SPY•NAGA Group warned that scrutiny of AI spending could deepen the equity correction if selling spreads beyond technology stocks. It also cited persistent inflation concerns, with US oil near $99.10 and September annual inflation at 3.7%.
1. Correction risks
NAGA Group’s market analysis warned that scrutiny of AI spending could deepen the equity correction if selling spreads beyond technology stocks. Equities and cryptocurrencies were struggling despite dollar weakness, which the analysis said suggested growth, inflation and valuation concerns outweighed support from a softer currency.
2. Inflation and rates
US oil near $99.10 was keeping inflation risks elevated, while September annual US inflation reached 3.7%. The Federal Reserve was expected to hold rates steady on October 27-28, with expectations for another increase shifting toward December. September PCE inflation data due October 29 could shape market expectations after the Fed decision.
