Good afternoon. I know you are all probably tired so I’ll make this fairly quick. There are only so many ways to describe a crime scene. Let’s get to it…
QQQs -6.5% as the tech meltdown continued following dems sweep on Wednesday and the worst day since the April 2025 tariff panic. Semis -13% led the way lower as tech investors went from debating 2028 EPS to wondering whether they'll make it to Friday. Worst day since March 2020 (that was Covid btw) and 2nd worst day ever and closed near the lows. Here’s SOX 1 day moves going back to 1994 (h/t John):
Some pointed to the Citrini piece yesterday (was out during the day) as a catalyst, and sure that didn’t help things and neither did the election. But reality is the AI trade/narrative was already on fragile footing heading into the week so the results on Tuesday were more than enough fuel to catalyze significantly more selling.
Despite weakness in semis, there was no place to hide today. Yesterday’s index level relief had plenty of names green, but none of that today. Anecdotally (and also seeing some of the prime numbers being thrown around), the last month has been one of the toughest stretches for L/S books and it continues to get worse.