The main reason for today's big drop in the US stock market isn't because of $ORCL or $AVGO's poor earnings reports—at least, that's not the most important reason. The key reason is that while the Fed has started cutting rates, long-term Treasury yields are rising instead of falling, leading to a steeper yield curve (bear steepening). This shows that the market believes the short end is controlled by the Fed, but the long end is beyond their control! Against the backdrop of the AI industrial revolution driving productivity growth and the need for large-scale infrastructure, the real demand for capital is rising, and the natural interest rate should be higher. This makes the Fed's already difficult situation even worse: The Fed is not facing the traditional inflation-recession trade-off but rather a suboptimal choice under multiple constraints. The implied new equilibrium can be summarized as: Moderately high inflation + Suppressed short-term rates + Letting long-term rates go but not out of control + Employment as the bottom line This means: For a considerable period, the Fed will prioritize systemic stability and employment support. The inflation target will shift from a "hard constraint" to a "long-term direction." The Fed is unwilling and unable to implement explicit YCC (Yield Curve Control) but will lean towards maintaining financial system functionality through structural and tool design (implicit YCC). Under this framework, full-scale easing is no longer the norm, and full-scale tightening is equally unsustainable. In this policy and rate structure, the stock market faces the following environment: Liquidity keeps flowing but doesn't spill over. Long-term rates continue to suppress valuation expansion. Volatility and structural divergence intensify. The stock market can operate long-term, but it's hard to achieve systemic valuation increases purely through liquidity. In this environment, the market rewards not "narratives" but real earnings growth, positive cash flow, high capital efficiency, and low reliance on financing. This also means that as investors, the range of targets to look for becomes narrower and simpler.