>The AI bubble burst is unfolding, but the stock market at the index level of the S&P500 (SPY) is not showing it yet, as investors sell Tech (XLK) and rotate to defensive sectors and interest rate-sensitive sectors. As AI stocks fall, interest rates fall because the AI bubble burst is likely to cause a recession. Thus, investors rotate to sectors like Financials (XLF) and defensives like Staples (XLP) and Health Care (XLV). This is what the early phase of the bubble burst looks like, similarly to what happened in 2000 and 2008.
