Every AI giant had a bear market. The S&P hid it.

• The bull market in stocks is considered intact, but the bond market is nervous, creating volatility in equities.
• Stronger-than-anticipated earnings growth (20-30%) allows the market to sustain higher bond yields, pushing the 'danger zone' for the 10-year yield to 5.5% or even 6%.
• There hasn't been a global market sell-off, but rather a rotation out of momentum/AI stocks into other sectors like healthcare and financials.
• Concerns exist about a potential pick-up in broad market correlation and the changing financial characteristics of large tech/AI companies, which are becoming more debt-laden.
• Upcoming political events (midterms) and the Federal Reserve's actions are seen as potential triggers for increased market anxiety.

The discussion centers on the current state of financial markets, with a focus on rising bond yields, strong earnings growth, and the performance of AI-related stocks. Analysts debate the 'danger zone' for bond yields and the underlying sentiment in the market, noting a shift from broad market movements to sector-specific rotations.