AI-trade selloff and hedge fund de-grossing
Equity markets saw 'raw carnage' in AI names after hyperscaler earnings raised capex funding concerns, with hedge funds de-grossing at the fastest pace since 2017 and Cramer warning of more pain.
What we know
An account on X quotes Bloomberg's Michael Ball on hyperscalers' free cash flow not supporting AI capex. Another account on X RTs Morgan Stanley data showing >8% de-grossing since June. Another account on X shares Cramer saying next week 'might be even worse.' Offsetting this, another account on X highlights continued massive GPU buildouts.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.