Investors are riding out the “whack-a-mole” software sell-off by loading up on protection against volatility and exploiting the divergence in sectors tipped to be either winners or losers from AI’s advance.
Some of Wall Street’s biggest players are turning to complex options and hedging strategies to navigate a market buffeted by blog posts and headlines that have recently wiped tens of billions of dollars off the value of some of the S&P 500’s largest tech groups.
On Monday, a 10,000-word Substack detailing a future in which AI hollows out consumption by raising unemployment sparked a fresh wave of selling across the software and private capital sectors.