Popular trades in global financial markets have all collapsed, and they have rewound when they have reached a “ridiculous level”

2024/7/26 3:54 JST (some excerpts)
Major assumptions surrounding lower US interest rates and AI completely changed, leading to yen purchases, tech stock sales, etc.
Observations have surfaced that the FRB will be forced to cut interest rates at a fast pace or drastically

The major assumptions that have driven global financial markets this year are being rapidly reviewed.
　　Investors in bond and exchange markets are rushing to reallocate their funds. Doubts surrounding the US economic outlook have increased, and observations have surfaced that the US financial authorities will be forced to cut interest rates at a faster pace than expected or drastically. What is driving this shift is the softening of private consumption of rice. This is reflected in a series of disappointing corporate results.
　　Among stock investors, skepticism is suddenly growing as to whether huge investments in artificial intelligence (AI) by technology companies will soon come to fruition. As a result, leading brands from winning groups such as NVIDIA and Broadcom are receiving sales.