Dan Ives defended CoreWeave today and the stock fell 12% anyway as chips extended their longest losing streak since 2008. Unlike the HSI bottoms, there is no buying thrust and credit is widening: high-yield protection closed at its widest in three months.
Three things
- The AI trade is being liquidated, not debated. Short sellers in chips booked an estimated $32 billion of paper gains over seven sessions, per S3 Partners data via Bloomberg ASKB.
- The Fed took a hike off the table and stocks fell anyway. October hike odds dropped to about 17% while Warsh spoke, per Bloomberg ASKB, and Williams sees no need for a hike in 2027.
- Credit is leading equity lower. CDX high yield closed at its widest in three months while the S&P 500 sits barely off its high, the gap our credit desk treats as the early warning.
The PDF is password-protected.
Cambridge Sigma Daily, written after the US close. For information only; not investment advice.