WS #17015
The Nasdaq continues its historic AI trade unwinding, breaking below key technical supports and triggering negative gamma hedging that chases prices lower. Despite the structural bearishness, pre-market futures are rallying roughly 2% as short-covering and dip-buying momentum provide a tactical bounce. However, analysts caution that this is a mechanical relief rally rather than a fundamental reversal, with the broader trend remaining heavily negative for high-multiple tech names.
AI Trade Unwind & Tech Volatility
The Nasdaq continues its historic AI trade unwinding, breaking below key technical supports and triggering negative gamma hedging that chases prices lower. Despite the structural bearishness, pre-market futures are rallying roughly 2% as short-covering and dip-buying momentum provide a tactical bounce. However, analysts caution that this is a mechanical relief rally rather than a fundamental reversal, with the broader trend remaining heavily negative for high-multiple tech names.