The market bottomed at the end of the

first quarter and has staged a very

powerful rally. As of last Friday, the

S&P was up 15% [music] and Nasdaq was up

23% for the second quarter alone.

However, this week the market,

especially Nasdaq, started to correct.

Fears about AI continue to haunt poor

software stocks and consulting

companies. In software, Salesforce,

Adobe, and Intuit were down 18%, 19%,

and 39%

respectively. In consulting, Gartner and

Accenture were down 18% and 35%

respectively. The hyperscalers, Amazon,

Meta, Oracle, Google, and Microsoft were

all down on Thursday. Apple also was

down as it raised prices on its MacBook

and iPad because of higher memory chip

prices. AI hyperscalers have become

very, very capital-intensive [music]

businesses and there is no end in sight

for how much capital they will need.