Svmuu News: Buying on the dip drove a rebound on Wall Street, with chipmakers rising. Investors are betting that AI-related trades—which have fueled this bull market—still have room to run.
UBS’s trading division said the sharp sell-off in momentum stocks may be nearing an end, creating an opportunity for investors to rebuild their positions in AI and semiconductor stocks.Part of the reason the sector may be bottoming out is that a large number of speculative positions have been unwound.UBS’s prime brokerage data shows that hedge funds have reduced their long positions in momentum and semiconductor stocks by about 5% of total market capitalization—one of the largest declines on record.