Tech's Trillion-Dollar Wipeout Is Here

Daily video by Korra · 16 October 2026

The AI trade that dominated markets all year just got a bill for one trillion dollars. That's how much value was wiped out from chip stocks this week…

Transcript

The AI trade that dominated markets all year just got a bill for one trillion dollars. That's how much value was wiped out from chip stocks this week alone.

This isn't a dip, it's a repricing. Nvidia is down almost six percent on the week, and the broader Nasdaq is down two and a half percent. This is the market reacting to inflation data that refuses to cool off. Yesterday's Producer Price Index came in more than double what was expected, cementing the inflation shock from earlier this week.

So where is that money going? Not into other growth names. While tech burns, look at what's leading the market over the last five sessions: Beverages and Tobacco. That's the most defensive rotation possible. It tells you the market is pricing in a long, cold winter, not another tech rally.

The easy-money macro that floated every tech valuation is officially over. Now the market is rewarding boring, tangible businesses that can survive inflation. I'm tracking this great rotation on korra dot finance. The real story isn't what's falling, it's what's rising while everything else gets repriced.

Information only, not investment advice.