The major markets embraced the fall colors as the indices were filled with red last week. The losses were greatest in the tech companies as information technology, communication services, and consumer discretionary. Closed the week with the greatest pullbacks headlines highlighted the concerns about a possible AI bubble with folks like the CEO of Goldman Sachs, David Solomon, speculating that there might be a pullback within the next two years.

Bloomberg recently released an infographic, which does a good job highlighting the circular investing of the most prominent names in the AI space. In the image, the circles and arrows show how Nvidia OpenAI and Oracle among other companies have been prominently buying goods or services from one company only to see reinvestment in various forms from one to another. The impact of these headlines have led to a number of companies seeing significant price jumps in their share price.

Meanwhile, there have also been additional headlines that highlight the amount of debt required to follow suit with these commitments. All that said, from a technical level, even after last week’s pullback in the S&P 500, the index was still able to stay above its 50 day moving average beneath the surface of the domestic market. We see that the style boxes did, in fact see some green last week. There was at least some semblance of positive performance in the small and mid cap segments despite the losses in the large cap capitalizations.

In political news, the current government shutdown became the longest running shutdown going into the weekend. But in a positive development, the Senate was able to find enough votes to try reopening the government. After eight Democrats joined the Republicans to advance a bill to fund the government for a few months until a longer term solution can be agreed upon.