PANews reported on November 5th that the Monetary Authority of Singapore (MAS) warned that high valuations in the technology sector pose a potential risk. In its annual Financial Stability Assessment report released Wednesday, the MAS stated, "Valuations in some equity markets are relatively high, particularly in the technology and artificial intelligence sectors… If market optimism regarding sufficient future returns from artificial intelligence declines, it could trigger a broader market correction and lead to more defaults in the private lending market." The MAS pointed out that much of the stock market's gains have been driven by AI-related investments, significantly increasing many investors' exposure to the information technology sector. Some large technology companies are using new, and potentially even revolving, private financing structures to support expansion, putting greater revenue pressure on some AI companies. The continued divergence between stock market valuations and downside risks to economic growth means that a shock could lead to disorderly market adjustments.PANews reported on November 5th that the Monetary Authority of Singapore (MAS) warned that high valuations in the technology sector pose a potential risk. In its annual Financial Stability Assessment report released Wednesday, the MAS stated, "Valuations in some equity markets are relatively high, particularly in the technology and artificial intelligence sectors… If market optimism regarding sufficient future returns from artificial intelligence declines, it could trigger a broader market correction and lead to more defaults in the private lending market." The MAS pointed out that much of the stock market's gains have been driven by AI-related investments, significantly increasing many investors' exposure to the information technology sector. Some large technology companies are using new, and potentially even revolving, private financing structures to support expansion, putting greater revenue pressure on some AI companies. The continued divergence between stock market valuations and downside risks to economic growth means that a shock could lead to disorderly market adjustments.

                                                                               Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday.                     The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction.  “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more