The Kobeissi Letter posted a chart on X showing something striking: the S&P 500 has now climbed above the same level it held before the February 22nd “AI crisis” report. That report, labeled the “2028 Global Intelligence Crisis,” caused a sharp drop in stocks as fear spread through markets. But in less than 48 hours, the index just erased that move — gaining roughly 120 points from its lows.

That kind of rebound questions just how much power a single “crisis narrative” really has. And while equities rallied, cryptocurrencies also showed strength today, with notable upside across major names as traders rotate back into risk assets.

The image shared by The Kobeissi Letter highlights three key points:

The visual chart itself shows a classic V-shaped recovery over a matter of sessions. Where most expected continued weakness, buyers stepped in and pushed prices higher.

The message from The Kobeissi Letter is clear: fear markets can be reflexive, but they can also reverse just as quickly when narratives change.

In this case, the rebound was not trivial. Markets moved back through the entire drop, suggesting two important points:

That contrast between narrative-based fear and price action is especially interesting right now, because capital flows are broadening. Stocks are up. And crypto is not lagging — many tokens showed strong green across the board today as traders responded to the shift in sentiment.

That synchronicity between equities and crypto highlights how correlated risk assets remain in the current macro environment.

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There are a few big takeaways from this quick washout and rebound:

Narrative-driven selloffs can be short-lived. The initial panic around an AI crisis report was severe enough to move markets lower, but the reversal shows that headline fear doesn’t necessarily have staying power. When underlying conditions don’t justify prolonged weakness, markets tend to mean-revert.

Sentiment can flip fast. Less than 48 hours after the crisis narrative took hold, traders pushed prices above where markets sat before the fear set in. That kind of speed is a sign that confidence is fragile but still present.

Risk assets are still alive. The rebound in the S&P 500 coincided with strength in crypto today. That’s key, because when equities get risk-on flows, altcoins and major tokens often follow. Traders are clearly willing to move back into assets that carry higher volatility and reward.

Short-term price action matters more than doom headlines. Headlines can move markets, but price action eventually reflects real flows. In this case, real flows favored buyers quickly after the initial drop.

If markets continue to hold these gains, it undercuts the idea that a single report can reset long-term expectations for AI or tech. Instead, price behavior is telling a more balanced story: fear caused a dip, but confidence caused the rebound.

And right now, confidence is winning the day.

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The post S&P 500 Erases AI Panic in 48 Hours as Crisis Narrative Crumbles appeared first on CaptainAltcoin.

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