Market Digest: Political Shocks, China’s $54B Lifeline and a Rotation of Flows as AI IPOs Loom

U.S. markets were closed for Labor Day, but a wave of headline events — a far‑right AfD landslide in Germany, China’s $54 billion capital injection for banks and insurers, active-manager rebalancing and index technicals — set up a high‑volatility reopening. Analysts see a market split between macro‑political risk, skepticism about policy support in China, and concentrated flow risks as AI IPOs and index reweights loom.