The market is rotating away from Mag 7 and AI, with rising credit spreads signaling increased skepticism about large tech and data center CapEx. Free cash flows at key tech names like ORCL and META have rolled over, and rising CDS levels suggest the market is questioning AI investment payoffs.
Japanese government bond yields surged to 2008 highs, signaling potential global market disruption and carry-trade unwinds. Databricks seeks $5B at a $134B valuation, nearly 32x sales, with sales forecast up 55% but gross margin declining to 74%.