Wall Street Banks Demand Margin Calls From Hedge Funds as AI Stocks Plunge; Nasdaq 100 Down 10%

NAS100-0.47%
GS-1.19%
JPM0.33%
INTC-5.88%
According to the Financial Times on July 29, Wall Street banks including Goldman Sachs and JPMorgan Chase demanded additional margin from hedge funds amid a sharp AI stock selloff, with some calls automatically triggered by risk control mechanisms. The Nasdaq 100 index fell 10% from June highs, entering a technical correction; SanDisk and Intel declined 53% and 39% from annual peaks respectively, while the Philadelphia Semiconductor Index dropped about 25% since late June. By Tuesday noon, long-short hedge funds fell an average 1.3%, multi-strategy funds declined 1.7%, marking one of the largest single-day losses since the 2020 market volatility. Goldman Sachs disclosed that about 16% of its prime brokerage risk exposure was directly exposed to AI storage chip stocks as of June 30.
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