Market Focuses on AI Sell-off Risks, Diminishing Impact of Strong Non-farm Payrolls

Some analysts have pointed out that although the latest October non-farm payroll data is strong, it is actually somewhat outdated. The market expects the Federal Reserve to raise interest rates in December, and the employment data has further reinforced this expectation. The more important question right now is how severe the AI sell-off will be and whether it will trigger a deeper market plunge. If this does happen, it will present a whole new variable for the Federal Reserve. However, at least for now, the stock market does not seem to care much about the latest data. S&P 500 index futures are almost unchanged compared to before the data release. After the congressional elections, investors’ attention remains focused on the debate over AI valuations.