Wall Street is suddenly fixated on valuations again, with the Shiller CAPE—an inflation-adjusted, 10-year earnings metric—at the center of renewed caution across investor conversations.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Wall Street bounced back Wednesday after Tuesday's sharp selloff in AI-driven stocks, as investors bought the dip amid solid corporate earnings and growing signs that the Federal Reserve may be nearing another interest rate cut.
Investors poured $37.6 billion into ETFs last week, led by SPY and tech-heavy funds, shrugging off Powell's hawkish tone as markets stay fixated on growth.
Risk appetite cooled on Tuesday as investors interpreted the latest batch of corporate earnings as solid but not spectacular, offering a convenient excuse to take profits after strong year-to-date rallies.
Vanguard S&P 500 ETF has smaller assets under management (AUM) but provides large-cap exposure and lower costs compared to the iShares Russell 2000 ETF.
