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Stock futures drop as Wall Street confronts the ‘blue tsunami’ threat to the AI boom (www.nbcnews.com)
submitted 2 days ago by to c/fuck_ai@lemmy.world
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[–] 81 points 2 days ago (5 children)

This sort of idiotic bandwagoning unmoored from reality and sensibility is one of the big reasons I no longer treat the stock market with any seriousness. The market drops because… checks notes… the unsustainable bubble that is already starting to pop is probably going to get reined in, and tariffs are probably going to be repealed leading to increased international trade…? 😐

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  • [–] 20 points 2 days ago

    Any chance for big-business conservatives to scare the uneducated with the boogeymen of regulation and taxation on the wealthy (NBC is owned by Comcast, and is run by Michael Cavenaugh, a former banking and private-equity CEO).

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  • [–] 13 points 2 days ago

    The US market is expected to drop because the US market is massively overloaded with bubble tech stocks. DJIA and VGK (FTSE Europe ETF) are up in extended hours. Even VUG (Vanguard Morningstar Growth; US growth stocks ETF) is up.

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  • [–] 1 point 1 day ago

    Well rising interest rates around the world + more attractive stocks for traditional businesses are no longer strangled by tariffs. Migrating that capital isn't going to be favorable for a sector that needs every single penny.

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    • [–] 35 points 2 days ago (3 children)

    Ah, I am glad this Blue Tsunami is going to make the parasites panic. But we need to make sure to capitalize on this victory. As it is useful if we make our new reps actually wield their power! If we can make the rich elite panic as a bonus action and keep them reeling, this will be the perfect time to separate a rich person from their money. Got to keep it cute, fresh, and fun!

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  • [–] 1 point 2 days ago (2 children)

    How about seperating them from their heads & their money?

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  • [–] 1 point 2 days ago (1 child)

    That is always the difficult part, motivating people to address the source of the problem. Violence might not be the best way to do it though, but. If the frustrations build up enough, that frustration will seek a route of that nature. If Rich people are not held accountable and forced to stay the fuck out of matters they should not be meddling in.

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  • [–] 2 points 2 days ago*

    Yeah, my thinking is that violence (and the accompanying glee from the public) would have a deterrant effect on the other oligarchs for a generation or so.

    Kinda like how, after seeing the reaction to Luigi’s vigilantism, Blue Cross very quickly walked back their plans to put time constraints on their coverage of anesthesia.

    It’s not necessarily my favorite path, but history tells us that it is an effective one.

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    • [–] 16 points 2 days ago (1 child)

    We'll see if the oligarchs are too stupid to wait until January to crash the economy. Got to wait until the dems are seated before you blame it all on them!

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    • [–] 14 points 2 days ago

    Bubble. AI bubble.

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    [–] 12 points 2 days ago (2 children)

    Futures are up though? I'm confused.

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    • [–] 10 points 2 days ago (1 child)

    The S&P 500 was up one year after all 11 midterms from 1982 through 2022, averaging a 13.7% gain. Returns were positive in 91% of cases across the 1980–2024 analysis of elections

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  • [–] 2 points 1 day ago

    I hate these sort of statistics, that pretend one singular factor is a predictor above all things. A whole lot of stuff is going on apart from the midterms that matter a lot more and is unlikeyl for the midterm results to meaningfully shift.

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    • [–] 11 points 2 days ago (2 children)

    This has already reversed and been updated

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    • [–] 13 points 2 days ago (4 children)

    What fucking boom?

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  • [–] 6 points 1 day ago (1 child)

    AI spending is the only things keeping GDP up

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  • [–] 10 points 1 day ago

    Probably, but it's also sucking the oxygen out of other things.

    A lot of the downward pressure on other industries is caused by the AI spending. The investors have withheld money from most companies, most companies can not get IT equipment because it's all been redirected to the AI companies, construction of anything other than datacenters have had equipment and manpower sucked out of it.

    Anyway, financially certainly a 'boom', but maybe not the good kind.

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    • [–] 4 points 1 day ago

    https://en.wikipedia.org/wiki/Capital_strike

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    [+] -14 points 2 days ago (7 children)

    Stock prices are a bubble, but I think AL itself not a bubble. AI is really doing a good job at coding and has really caused millions of people to lose their jobs

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  • [–] 4 points 1 day ago (3 children)

    Some utility does not preclude a bubble.

    Almost every bubble has a solid core of value in there, it just doesn't match the level of financial investment associated with it.

    2007 bubble featured housing as a pillar, and of course housing is highly valued. The internet tech bust of 2000, and clearly the internet had a role to play, even a transformative one, but still a financial bubble.

    Here we have a blend of bubble factors:

    • A shiny new tech with some utility, but unclear precisely how it will shake out and who will endure, like the .com
    • Dubious institutional lending, similar to the 2007 situation, but with these datacenter operators instead of homeowners
    • Meme stocks being a sign of a bunch of folks going all in on 1920s style irresponsible investment, going big on margin debt especially

    With all those factors in play simultaneously with the impossible magnitude even in relative terms compared to bubbles past.... When it pops it's going to be nasty. We have more understanding and techniques to manage such a case, but they will be strained in unprecedented ways.

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  • [–] 2 points 1 day ago (2 children)

    Let's hope for the collapse of AI 😅 , Humanity can live without AI!

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  • [–] 2 points 1 day ago (1 child)

    I'd be totally happy if that level of retreat from the technology happen. But I'll at least settle for people to get over the novelty and stop being so obnoxious about it, and for it to stop pushing datacenters to people that don't want them by corrupting the local governments.

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  • [–] 1 point 1 day ago

    Worker unions are important; not rich/oligarchs class divides and controls them. Blue-collar, white-collar, etc.- all of them are the labor class. Anyone who works for someone else and sells their knowledge or skills in exchange for a salary is part of the labor force

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  • [–] 3 points 2 days ago (2 children)

    A bunch of companies are panicking and rehiring people because the LLMs are worse, slower, and/or more expensive than people, though. Causing people to lose their jobs doesn't require it to actually do the jobs better, it just requires CEOs to think that it can replace people, which turned out to be far easier.

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  • [–] 1 point 1 day ago (1 child)

    Could you please list these companies and compare them by the number of employees laid off because of AI?

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  • [–] 1 point 1 day ago* (last edited 1 day ago)

    Here are some examples. Keep in mind that this is just companies that have rehired and admitted it; others are rehiring under another name (e.g. "we cut our workforce because of AI, then it was so successful that we grew and added more jobs" when they're actually the exact same jobs) and still others are just taking the traditional path of laying off people who were actually needed and then shoving the work onto the remaining employees, degrading their products, and so on.

    Also, a lot of companies labeled their layoffs as AI not because they actually had anything to do with AI, but because the company was in financial trouble and needed to lay people off, but claiming it was due to AI made the stock price go up instead of down.

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