This is the natural phenomenon of big IPOs sucking up liquidity after the market improves. During this phase, many people have very little cash and need to sell their stocks to participate in new offerings. A lot of people have a misconception—they see the fundraising amount as limited and think it won’t drain liquidity, completely ignoring the massive funds being pulled out of the stock pool for these new offerings. This was another key reason for adopting a conservative strategy starting last week. It’s also one of the main reasons for the recent decline in the US stock AI sector.