As Markets Pause After AI-Driven Rally, Bubble Fears Grow[Stocks](https://moneymorning.com/category/article/stocks/) # As Markets Pause After AI-Driven Rally, Bubble Fears Grow  by Rich Duprey  October 10, 2025  Share it: ## **Today’s Top & Bottom Lines – October 10, 2025** | | | | --- | --- | | #### **Pre-Market Price Check** | | **S&P 500 Futures: (+0.08%)** | **10-Year Yield: (-0.01%) 3.9 bps** | | **Nasdaq 100 Futures: (+0.10%)** | **WTI Crude: $60.81 (-1.14%)** | | **Dow Jones Futures: (+0.08%)** | **Gold Futures: 4,006 (+0.84%)** | | **VIX: 16.50 (+0.43%)** | **Bitcoin (BTC): ~$121,536 (-0.98%)** | ## **What’s Driving Stocks This Morning** Stocks paused again yesterday from their relentless march with all major indexes closing in the red. As noted yesterday, AI mania remains the driving force pushing stocks higher with OpenAI emerging as the market's new kingmaker, but the concentrated gains show this is narrow, but deep rise. According to Morgan Stanley data, Magnificent 7 stocks plus about three dozen AI data center companies account for 75% of the S&P 500's gains since ChatGPT burst on the scene in November 2022. It shows the market rally is not a broad-based one, which brings into question the real health of the market, and the likelihood of a very sharp correction on just a single bit of negative news. Despite Nvidia (NVDA) CEO Jensen Huang saying the AI boom is not a bubble, whispers of one are growing as the scale of the advance increases. Both gold and silver have reached all-time record highs above $4,000 and $50 per ounce, respectively, as more investors seek out safe haven assets, and Bitcoin (BTC) had briefly hit $125,000. Protecting against downside risk is ever more important the further along the market rises. **The Big Picture:** As the markets take a breather from hitting new records, concerns about a correction grow. The rally has not been broad-based increasing the risk of a downturn on any hiccups in momentum. Safe haven and alternative assets are benefiting, though all retreated as well yesterday as investors lock in profits from their rallies that have outpaced those of the market. ## **Stocks on the Move (Pre-Market)** - **Intel (NTC)** $38.43 +1.7% \- The chipmaker hits a new tech milestone with the launch of its 18A PC chip and unveils Panther Lake architecture. - **Amcor (AMCR)** $8.13 +3.9% The packaging specialist appoints a 30-year industry veteran as its new CFO. - **Albemarke (ALB)** $98.00 +1.6% \- Rare earths mining stocks were generally higher yesterday after China restricted exports further, and the lithium miner is stretching out the gains. - **Mosaic (MOS)** $28.97 -13.4% \- The fertilizer stock is plunging after releasing its preliminary Q3 volumes report. - **Qualcomm (QCOM)** $162.46 -2.0% \- The software design stock is giving back a little of the big gains it made yesterday following its partnership with OpenAI. - **Spirit AeroSystems (SPR)** $39.80 +3.0% \- Boeing's acquisition of its aerospace components supplier received conditional EU approval. ## **Upgrades & Downgrades** **Upgrades:** - **DraftKings (DKNG)** upgraded to Buy at Berenburg, tgt $43 - **LVMH (LVMUY)** upgraded to Buy at Deutsche Bank - **Roblox (RBLX)** upgraded to Neutral at MoffettNathanson - **Tractor Supply (TSCO)** upgraded to Buy at Citigroup, tgt $62 - **Harmony Gold (HMY)** upgraded to Buy at HSBC Securities **Downgrades:** - **Bloom Energy (BE)** downgraded to Hold at HSBC Securities, tgt $100 - **Atlas Energy Solutions (AESI)** downgraded to Sector Perform at RBC Capital Markets, tgt $13 - **Freshpet (FRSH)** downgraded to Hold at Jefferies, tgt $53 - **RenaissanceRe (RNR)** downgraded to Neutral at JPMorgan, Tgt $303 - **Sonoco Products (SON)** downgraded to Neutral at BofA Securities, tgt $56 ## **Today’s Bottom Line:** With Federal Reserve chairman Jerome Powell missing his speech the other day, there was one less data point to get a feel for the direction the central bank would take on interest rates when it meets later this month. The government shutdown has created a data void on the health of the economy, though private company data suggests the labor market continues to soften. As the Fed has tilted towards focusing on employment as part of its twin mandate of jobs and inflation, the prospects for further rate cuts grows. There isn't likely to be any deep cut made – betting markets indicate another 0.25% drop the most probable – there is still a sense of unease at play. While newly appointed governor Stephen Miran favors a 50-basis point cut, he's probably a lone outlier.  **Beat the market, without relying on brokers or biased institutions.** Email(Required) Comments This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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