Morgan Stanley Reports Record 70 Percent AI Momentum Crash

Morgan Stanley reported a significant crash in technology momentum, describing the downturn as the worst since the COVID-19 pandemic. According to the firm's Global Reflections report, the AI trade experienced a record 70 percent momentum crash.

This market shift coincided with rock-bottom net returns for hedge funds. Analyst Nick Savone characterized current investor sentiment as one of "deep fear" following the U.S. midterm elections.