Opinion: U.S. Stock Market Crash Unlikely, Not Triggered by High-Leverage ETFs and AI Uncertainty

BlockBeats News, June 25th. Tonight, the U.S. stock market opened higher but turned lower. In the absence of major news, the Nasdaq 100 index plummeted 1000 points in 27 minutes, wiping out $1 trillion in market value from the S&P 500, quickly shifting from a +1% open to -3%.

Looking back at pre-market information, U.S. PCE inflation rose to 4.1% (the highest since April 2023). Additionally, Apple announced a price increase of up to 25% for Mac and iPad due to soaring AI chip costs, causing Apple's stock price to plummet nearly 6% and erasing $220 billion in market value, triggering panic selling. However, these news events do not seem enough to trigger such a rapid market decline.

The Kobeissi Letter believes that the widespread high-leverage ETFs, AI uncertainty, and massive liquidation in the cryptocurrency market are the main reasons for the increased volatility. It predicts that market volatility will persist.