Nasdaq Sells Off 2%+, VIX Spikes to 4-Month High — AI Trade Unwinds
The Nasdaq 100 fell over 2% and the VIX hit a 4-month high of 21.41 as AI/tech stocks sold off violently. Hedge funds were crushed in what traders are calling an 'AI liquidation' with anti-AI trades ripping.
What we know
An account on X confirmed the Nasdaq 100 down 2%+ and now off 7% from its 10-day high. Another account on X noted VIX jumping to 21.41. Another account on X described 'AI liquidation, memory meltdown, hedge fund carnage' while the anti-AI trade ripped. Another account on X flagged VIX approaching +40% on the day with Extreme Fear at 19. CoreWeave $CRWV fell 11.7% as its 9.75% junk bonds traded at 81.80 cents. Another account on X highlighted the systemic risk of $14BN in distressed junk bonds backing data centers with CoreWeave as the sole tenant. Meanwhile, another account on X noted BTC held firm while AI stocks sold off, and another account on X noted the S&P 500 still holding its 60-day MA on OpEx day.
How the story developed
The Nasdaq 100 fell over 2% and the VIX hit a 4-month high of 21.41 as AI/tech stocks sold off violently. Hedge funds were crushed in what traders are calling an 'AI liquidation' with anti-AI trades ripping.
AI and data center names are hitting 52-week lows while GPU and chip rental prices paradoxically hit all-time highs. Hedge funds are reportedly massively short the Russell, and the Nasdaq has flashed a reversal signal. KOSPI down 20% in 5 days.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.