Flashing

• JPMorgan has issued a warning regarding a growing divergence in the AI trade, noting that hardware stocks are soaring while investors abandon other key market pillars. • This trend mirrors a warning signal that preceded the dot-com crash, suggesting a potential imbalance in current market valuations. • AI hardware and memory stocks have seen massive gains, highlighted by the Roundhill Memory ETF, which has risen 141% since its inception in April.

• Three historical factors that preceded double-digit stock-market declines are present simultaneously in 2026, according to DataTrek co-founder Nicholas Colas, signaling heightened risk for U.S. equity investors. • The S&P 500 has dropped 4.7% in March alone and is down 4.2% year-to-date, on track for its worst monthly performance since March 2025 and first quarterly loss since Q1 2025. • Despite warning signs, Colas maintains a cautiously optimistic outlook, stating there is still time to avoid a double-digit loss if Middle East tensions de-escalate swiftly and crude-oil prices decline.