Stocks at Record Highs Face Risks from Slowing Economy and Fading AI Momentum Wall Street posted a bullish trifecta on Thursday, with the Dow +1.36%, S&P 500 +0.85%, and Nasdaq +0.72% all closing at fresh record highs. But as history shows, peaks are often followed by painful pullbacks. Peter Berezin, chief global strategist at BCA Research, warns that sell-offs rarely have a single cause. “To ask what will trigger the next stock market crash is akin to asking which snowflake will trigger the avalanche,” he says. Instead, downturns tend to emerge when multiple pressures converge. The takeaway: markets can stay buoyant even in the face of risks, but once cracks spread, sentiment shifts quickly. Looking ahead, Berezin warns that today’s bull market pillars — economic resilience and AI enthusiasm — are showing strain. If equity wealth falls, consumer spending may weaken further, amplifying the downturn. “While it’s impossible to know exactly when equities will peak, enough vulnerabilities have built up to justify keeping one hand near the eject button,” Berezin concludes.

Tesla’s Market Share Sinks as Sales Lose Momentum Tesla Inc.’s share of the U.S. electric vehicle market slid to an all-time low in August, highlighting how quickly the company’s dominance is eroding. According to Cox Automotive, Tesla controlled just 38% of the U.S. EV market last month, down from 42% in July and well below the nearly 80% share it held five years ago. The company sold about 55,500 vehicles in August—a modest 3% gain from July, but nearly 7% lower than a year earlier. By contrast, U.S. EV sales overall surged to a record 146,147 vehicles in August, capturing almost 10% of all new auto sales. Analysts say the looming phaseout of Biden-era IRA incentives has driven urgency among buyers. The competitive landscape has also shifted dramatically, with Ford, GM, Rivian, and other automakers cutting into Tesla’s lead. At the same time, CEO Elon Musk’s political controversies—from his involvement in the Department of Government Efficiency to his public feud with President Donald Trump—have damaged Tesla’s brand appeal. “Tesla has lost its ‘aura,’ which had been holding up sales in recent months,” said Sam Fiorani of AutoForecast. He added that Musk-aligned buyers rushed in earlier this year, leaving little leftover demand by summer. Tesla will report third-quarter sales in early October. So far in 2025, its shares are down about 14%, compared with an 11% gain for the S&P 500.

Eightco Holdings’ 3,000% Rally Sparks “Market Madness” Warnings Shares of Eightco Holdings (OCTO) exploded from $1.45 to $45.08 on Monday, a staggering 3,009% surge, after announcing a $250 million investment in Sam Altman’s cryptocurrency Worldcoin. The move also saw Wedbush tech analyst Dan Ives named chairman, while BitMine (BMNR) — led by Fundstrat’s Tom Lee — disclosed a $20 million stake at $1.46 per share. “This is pure frenzy,” said Mike O’Rourke of JonesTrading, noting Eightco’s only real asset is the $250 million financing. Despite that, the company closed with an $8.5 billion market cap. He expects an at-the-market share offering could be next to boost its multiple of net asset value (mNAV). Eightco wasn’t alone. Forward Industries (FORD) jumped 59% to $25.96 after announcing a $1.65 billion Solana (SOL) investment. In both cases, sponsors now control about 98% of the companies. “The public’s willingness to pay massive premiums for an equity wrapper around crypto assets they could buy directly is remarkable,” O’Rourke added, calling it a sign of “extreme greed.” The strategy mirrors Michael Saylor’s MicroStrategy (MSTR) playbook of turning corporate treasuries into crypto bets. But O’Rourke warns that as digital asset conversions become commonplace, the scarcity value that once gave MicroStrategy its edge is quickly vanishing.