Default swaps on Big Tech quadrupled, and five canaries in the coal mine | Market Hang

Market sentiment regarding AI remains fragile as investors grapple with high-bandwidth memory backlogs and the delayed IPOs of major players like Anthropic and OpenAI. Indicators such as the Korean stock market and rising credit default swaps on hyperscalers signal potential structural risks, despite recent rebounds in risk assets. While some investors seek refuge in utilities as a backdoor play into the AI revolution, others warn of circularity and the lack of true diversification. Meanwhile, the K-shaped economy continues to influence consumer behavior, with corporate leadership increasingly scrutinized for political commentary that risks alienating shareholders. Ultimately, the market faces a transition from growth-at-all-costs to a focus on through-cycle earnings, where gross margins serve as a critical, yet under-discussed, indicator of durable demand.