Wall Street sheds US$3 trillion in worst session since April 2025
Leveraged exchange-traded funds were expected to sell about US$47bn of stocks into the close, Nomura said in an intraday note reported by Reuters, which would be the second-largest amount in Nomura’s data going back to July 2006.
A Goldman Sachs prime brokerage report sent to clients on November 5 said large multi-strategy hedge funds were down “significantly” because of outsized exposure to large AI stocks.
Retail investors were on track for their largest day of selling across single stocks since the COVID-related crash, Viraj Patel, global macro strategist at Vanda Research, said in an intraday note reported by Reuters.
“On a typical sell-off, retail buy the dip. Today, that bid has effectively disappeared from individual names,” Patel said.
Democrats won control of both chambers of the US Congress in the November 3 midterm elections, Reuters reported, including in states where opposition to new data centres has mounted.
