JPMorgan: Hedge fund cuts may limit stock declines, chips as risk gauge
JPMorgan argues that hedge funds' reduced equity exposure may limit further stock declines, with semiconductor shares serving as the key indicator of risk…
CoreWeave and other AI and cybersecurity names led a tech selloff; the Nasdaq fell 1.9%.
Tech stocks are under pressure once more, with CoreWeave again leading the decline.
The market's distrust of the neocloud space is still there, and some cybersecurity names and other AI winners have joined the slide.
CoreWeave is at the heart of the selloff, with its unsecured bonds yielding about 15%. The mood turned sour again in late trading the prior day after a Bloomberg story drew attention to $3.3 billion in stock sales by CoreWeave's founders since the IPO last year, $2.4 billion of it this year.
The stock has fallen more than 11% today, giving back nearly all of the previous session's sharp bounce.
The day's other notable losers:
Among the bigger names, the picture is much the same:
All told, the Nasdaq Composite is 1.9% lower, and oil is offering little support, sitting near its highs of the day with a gain of 2.7%. I suspect the market may be giving too little weight to the possibility of a rate hike at the end of the month. Incoming data continues to run hot, and this week's inflation readings were troubling.
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JPMorgan argues that hedge funds' reduced equity exposure may limit further stock declines, with semiconductor shares serving as the key indicator of risk…
The Nasdaq Composite fell 2.60% as chip and AI stocks tumbled, while the Dow edged up 0.02%.
OpenAI is close to raising up to $30 billion from a group led by UAE investors, at a valuation of $1.25 trillion, below its initial target.
US tech stocks fell sharply, with Meta and Amazon leading losses, while Apple rose 0.88% as investors weighed AI spending costs.