The S&P 500 closed below its 50-day moving average on Friday for the first time in more than two months, according to Yahoo Finance AlphaSpace analysis, signaling potential technical weakness. The index appeared set to start the week under this level based on premarket trading on Monday. The breach comes amid heightened volatility driven by profit-taking in AI stocks on valuation concerns, compounded by reports that OpenAI is considering delaying its IPO until 2027 and a sharp post-IPO sell-off in SpaceX. BCA Research strategist Peter Berezin warned that AI stocks are in an earnings bubble and equities could fall 30% to 50% when it bursts. Fresh macroeconomic anxiety over sticky inflation and stronger-than-expected data has also raised fears that the Federal Reserve will keep interest rates higher for longer.
Space Exploration Technologies Corp. Class A Common StockMentioned as experiencing a sharp post-IPO sell-off, contributing to market volatility.
Reported to be considering delaying its IPO until 2027, adding to negative sentiment.