'Big Short' investor Michael Burry has a $1.1 billion bet against AI stocks and markets are plunging | Fortune

"Nasdaq 100 futures were pointing downward again this morning after the index lost 2% yesterday in a massive, global selloff of tech stocks that shows no sign of letting up. The selling continued this morning in Asia and Europe. The STOXX Europe 600 was down 0.46% in early trading. Japan's Nikkei 225 was down 2.5%. And South Korea's KOSPI was down 2.85%. Bitcoin dipped below $100K but then rallied a little to $101K."

"Yesterday, the Nasdaq Composite was down 2.04%, Palantir lost nearly 8%, Reddit lost 8.4%, Nvidia was down 4%, and Softbank lost 10% at one point. The markets are highly vulnerable to a selloff in tech stocks. In October, tech stocks tracked by Bank of America contributed more than 90% of the S&P 500's total return for the month, according to analysts Savita Subramanian et al. The Magnificent 7 stocks alone contributed 80%."

""In Hong Kong, it's six tech stocks that are responsible for 50% of the Hang Seng's return this year. In Korea, it's two stocks that are responsible for 40% of the index's return. In Taiwan, one stock is responsible for more than half of the return, so it is a very narrow rally that is comparable to how much the Magnificent 7 is driving the S&P in the U.S.," according to Arjun Neil Alim of the Financial Times."

"Multiple Wall Street analysts are now asking whether equities are heading for the 10-20% correction predicted by the CEOs of Goldman Sachs and Morgan Stanley yesterday. The drama was heightened when Scion Asset Management, Michael Burry's hedge fund, disclosed to the SEC that it had a short bet worth $1.1 billion against Nvidia and Palantir. Burry, of course, was the investor who placed "The Big Short" against subprime mortgages prior to the Great Financial Crisis of 2007."

Nasdaq 100 futures fell after a 2% drop in the index amid a massive global selloff concentrated in tech stocks. Asian and European markets extended the selling, with the STOXX Europe 600 down 0.46%, Japan's Nikkei 225 down 2.5%, and South Korea's KOSPI down 2.85%. Bitcoin dipped below $100,000 then rebounded to about $101,000. Major names saw steep losses: Nasdaq Composite down 2.04%, Palantir nearly 8%, Reddit 8.4%, Nvidia 4%, and SoftBank as much as 10%. Tech gains have been narrowly concentrated, with a handful of U.S. and Asian stocks driving index returns. Wall Street now weighs a possible 10-20% correction, and a $1.1 billion short against Nvidia and Palantir was disclosed by Scion Asset Management.

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