Welcome to Markets Desk, here's what's moving the needle right now.
A closely watched measure of market fragility just hit its highest possible reading of one, the first time it's done so since December of last year following the presidential election. Historically, when this indicator maxes out, volatility follows — traders should be watching their hedges carefully heading into the week.
Shifting to a regulatory development with serious implications for the AI trade, the SEC has subpoenaed major Wall Street banks seeking information about trades and financing connected to AI-focused hedge fund Situational Awareness, which came close to collapse. The probe signals regulators are scrutinizing how banks extend leverage and credit to AI-driven funds, a space that has grown rapidly with relatively little oversight until now.
And on the cloud side of the AI story, Amazon Web Services chief Andy Jassy has staked a bold claim — that AWS can eventually reach one trillion dollars in annual revenue. With the division posting thirty-seven percent year-over-year growth last quarter, the math is ambitious but not entirely without foundation, assuming enterprise AI adoption continues accelerating at its current pace.
That's the tape. Markets Desk, signing off the floor.
