This is a very dumb take. The US markets are over-leveraged so they are very sensitive to any Fed rates news. Mag7 are still doing very well this month in spite of the madness of issuing 60 billions in bonds to build AI datacenters.
But China just built a massive navy so many are expecting a blockade of Taiwan in the next few years. China also blocked chip exports in the Nexperia spat with the EU, showing their hand. On top of tight rare earths export controls. It's very rational to buy as many chips as possible while they are available. And Wall Street is very happy to finance all this.
The problem is the rest of the economy is out-competed for financing at times of economic distress. And they are over-leveraged, too.
It seems the powers that be decided to sacrifice the wider economy and American workers. Bailouts for me but not for thee.
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