Global week ahead: Which tail is wagging the market dog?

Market Overview - Global stocks experienced their worst week since April, primarily driven by concerns surrounding AI stocks [1] - The Nasdaq exhibited significant volatility, marking its largest swing from gains to losses since April [1] - European and Asian markets also faced declines, with the Stoxx 600 reaching a one-month low and Germany's DAX hitting levels not seen since June [1] Investor Sentiment - Investors are becoming more cautious regarding previously favored stocks and asset classes, prompting discussions on the underlying causes of this shift [2] - The market is questioning the relationship between various economic factors and stock performance, particularly which influences are driving market movements [2] Contributing Factors - AI Anxiety: Concerns over AI stocks are impacting investor behavior, leading to a sell-off in tech and crypto markets [3] - Crypto Concerns: The interconnection between tech stock owners and crypto investors is creating a cycle of selling, exacerbating market volatility [3] - Delayed Data: The U.S. government shutdown has delayed important economic data, contributing to uncertainty regarding Federal Reserve actions [6] - Fiscal Policy: Anticipation of the U.K. budget announcement is influencing market dynamics, with a focus on addressing a £30 billion fiscal gap [8] Upcoming Events - Key earnings reports and economic data releases are scheduled for the upcoming week, including Prosus, Alibaba, and EasyJet earnings, as well as U.S. GDP and CPI data [10]