Short-term U.S. Treasury default risk → Liquidity tightening → High-valuation sectors under pressure (AI, tech) Liquidity-sensitive sectors are the first to pull back (Valuations in sectors like AI, semiconductors, software, SaaS heavily rely on low discount rates.) When risk-free rate volatility rises → Future cash flow discount factor increases → Valuation compression At the same time, institutions will reduce exposure to risk assets, prioritizing the sell-off of high-beta (high volatility) sectors. ————— Meanwhile, the VIX hits a recent high again, sparking concerns about the AI sector. ALAB 92.5M (leading cloud computing company) META 42.7M TSLA 22.8M BABA 21.6M NVD 7.4M