Nasdaq 100 Falls 6.4% as Morgan Stanley Warns AI Trade Hit Marathon Wall
The Nasdaq 100 fell 6.4% on Thursday, its worst day since March 2020, while the Philadelphia Semiconductor Index dropped 12.2%. Morgan Stanley said the AI trade has hit a marathon wall after midterm election wins raised data center regulation concerns. Hedge fund net leverage fell to 42% in a week. Any rebound may be limited to short covering.
