This week, everyone’s asking the same question: will the market keep falling, or is there a turning point ahead?

There’s no doubt artificial intelligence is at the centre of the anxiety that’s been rattling both Wall Street and our local market. Last week, the Dow finished down 309 points, and the S&P 500 slipped as well. The Nasdaq managed a small rise, which is interesting, maybe a sign some investors think the sell-off in tech has gone too far.

But AI stocks are still a hot topic. There’s no denying valuations look stretched, and that has people nervous. It doesn’t help that expectations for a US rate cut in December have dropped sharply. Where the odds were once sitting at 65%, now they’ve fallen right down to about 20%. That’s a real shift in the outlook, and it’s weighing on sentiment.

On the bright side, the US government shutdown is behind us. But all that means is markets will be watching the next round of data even more closely. If the numbers suggest the US economy is running faster or slower than expected, that could play havoc with inflation expectations and keep investors guessing.

There are still a lot of curve balls out there, and this week could really set the tone for what comes next. Check out our investor calendar for a look at everything coming up. Nvidia, for example, is reporting later this week. That’s the poster child for AI stocks, and if it comes in with a strong result, we might see a bounce. If not, the selling could pick up speed again.

It’s not just the US. We’re feeling it here too on the ASX. Tech stocks have been sold off locally, and even Bitcoin has slipped below $95,000 US dollars for the first time in a while. There’s no shortage of nerves.

Looking ahead, we’ve got the RBA minutes out on Tuesday and the wage price index on Wednesday. Both will be critical for understanding where inflation is heading, and when or if we might see another rate cut here in Australia.

There's plenty to watch (maybe more than usual), plenty of risks, but also plenty of opportunities if you know where to look.

Let's see what the week brings.