In recent 2 weeks, US stocks especially tech/QQQ went straight up, before the AVGO disappointing earnings.
There is an unusual capital inflow that accelerated.
It’s not just FOMO after fabulous run in April and May.
China’s recent crackdown also played an role – as Chinese investors investing overseas fear that they can’t add/buy for the next two years, they rushed to buy a lot!
And they are more likely to chase high beta stocks, leveraged ETFs.
That’s a problem in the short run.
And a correction should normalize this.
These investors can still sell according to rules; they can also buy/add when being abroad.