JPMORGAN SEES HEDGE FUND DE - RISKING LIMITING STOCK DOWNSIDE , WITH CHIPS THE KEY GAUGE

What happened: JPMorgan strategist Nikolaos Panigirtzoglou said hedge fund equity exposure has fallen far enough to suggest limited further downside for stocks, a call tested when chip shares fell the next day. Key numbers: Philadelphia semiconductor index fell Why it matters: JPMorgan sees chips as the best gauge of global risk appetite because the sector absorbs a larger share of investor capital than its index weight suggests. It views neocloud funding concerns as manageable, while HSBC has warned of structural concerns and Goldman Sachs points to CoreWeave's asset-backed financing.

JPMorgan strategist Nikolaos Panigirtzoglou said hedge fund equity exposure has fallen far enough to suggest limited further downside for stocks, a call tested when chip shares fell the next day.

JPMorgan sees chips as the best gauge of global risk appetite because the sector absorbs a larger share of investor capital than its index weight suggests. It views neocloud funding concerns as manageable, while HSBC has warned of structural concerns and Goldman Sachs points to CoreWeave's asset-backed financing.