For the past three years, the market has seen a series of record highs as the AI trade continued to push the major indices higher. But amid that exponential growth, an increase in bearish bets has begun to emerge, and now it looks like they’re beginning to pay off.
The current sell-off has had an adverse and outsized impact on chipmakers and Magnificent Seven stocks. Tesla (NASDAQ: TSLA), for instance, is down around 30% year-to-date (YTD), including a decline of nearly 27% in July. Meanwhile, South Korean semiconductor manufacturer SK hynix (NASDAQ: SKHY) has slid about 14% since its July 10 NASDAQ listing.
