GLASS TOTALLY AND COMPLETELY EMPTY : MCELLIGOTT WARNS AI TRADE IS NOW TOXIC PICK YOUR POISON AS 5 - SIGMA STOP - OUTS RIP ACROSS WALL STREET

What happened: Nomura's Charlie McElligott said the AI trade is now "toxic" after six 5-sigma moves in one day on Nomura's long/short monitor, when Meta's capex wall reversed a midweek AI rally. He said the bleeding has paused, but whether it has stopped is a different question. Key numbers: Six 5-sigma moves in one day; one Goldman measure called it the ugliest hedge fund day since the US lost its AAA rating in 2011. Why it matters: McElligott's warning frames the AI trade as toxic, and the Goldman measure places the selloff among the worst hedge fund days in over a decade.

Nomura's Charlie McElligott said the AI trade is now "toxic" after six 5-sigma moves in one day on Nomura's long/short monitor, when Meta's capex wall reversed a midweek AI rally. He said the bleeding has paused, but whether it has stopped is a different question.

McElligott's warning frames the AI trade as toxic, and the Goldman measure places the selloff among the worst hedge fund days in over a decade.