Here’s what’s been happening on Wall Street overnight

Getty Images‘Dance of Time I’ by Spanish artist Salvador Dali.

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Hedge funds just made a big mistake on tech stocks.

Following the recent market correction, hedge funds and other large speculators made a poorly-timed decision to go net short tech stocks for the first time in 21 months. The tech-heavy Nasdaq 100 responded with a 5.6% gain, its best weekly performance since October 2014.

The prospect of rising inflation and the Federal Reserve’s possible reaction to it is Wall Street’s favourite new thing to worry about. And, after years of false alarms, “a sustained rise in inflation will hold the Fed’s feet to the fire,” according to Capital Economics.

Morgan Stanley says the stock market’s meltdown was just an “appetizer” – here’s how to protect against the next sell-off. Credit Suisse has identified what could be the next big breaking point for stocks.

Here’s what else is happening today:

SpaceX is about to quietly launch the first 2 of nearly 12,000 satellites to blanket Earth in high-speed internet. Google has developed a way to predict your risk of a heart attack just by scanning your eye.

A startup is working with IBM’s Watson to tell marketers exactly where they should spend their media budget, and it claims it “can predict the future.” Tesla will face a reckoning this year if it doesn’t make a fundamental change.

Silicon Valley is so expensive that people who make $US400,000 a year think they are middle-class.

Lastly, we drove the $US65,000 Audi S5 Coupe – and it’s pretty much flawless.

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