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Analysis: The seven giants of the US stock market are trapped in a "the more you spend, the more you fall" paradox. This year, for every 1 dollar spent on AI, approximately 6.33 dollars in market value evaporates

The Macro Paper account published on platform X, stating that according to the data compiled by the company, the seven tech giants in the US stock market (Alphabet, Nvidia, Meta, Tesla, Amazon, Microsoft, Apple) have invested approximately 766 billion dollars this year, corresponding to a total market value evaporation of about 4.85 trillion dollars since the peak in 2026, which translates to approximately 6.33 dollars in market value evaporated for every 1 dollar invested.Breaking it down, Alphabet invested about 200 billion dollars, with a market value evaporation of approximately 1.62 trillion dollars; Nvidia invested about 7.4 billion dollars, with a market value evaporation of approximately 1.49 trillion dollars; Meta invested about 140 billion dollars, with a market value evaporation of approximately 501 billion dollars; Tesla invested about 20 billion dollars, with a market value evaporation of approximately 475 billion dollars; Amazon invested about 220 billion dollars, with a market value evaporation of approximately 378 billion dollars; Microsoft invested about 170 billion dollars, with a market value evaporation of approximately 197 billion dollars; Apple invested about 9 billion dollars, with a market value evaporation of approximately 194 billion dollars.Editor's note: The above investment criteria and market value drawdown starting point are as stated by the account, and independent third-party comparison criteria have not yet been disclosed.

Wall Street traders believe the main reason for the sharp decline in U.S. stocks is the liquidation of hedge funds, with the market expecting multiple funds to face complete liquidation

In response to the sharp decline in U.S. stocks yesterday, most traders and analysts on Wall Street believe that the main reason is not a deterioration in fundamentals, but rather the liquidation by hedge funds. Noel Smith, Co-Chief Investment Officer of Kai Asset Management, stated: "It is extremely rare to see such a decline without significant market news. It smells like liquidation."In addition to the report last night by Bloomberg that multi-strategy hedge fund Walleye Capital will streamline its internal long-short equity business, the market generally expects several funds to be undergoing complete liquidation, or that the pods (independent investment teams) within multi-strategy funds are being forced to close positions or liquidate.According to a list released this morning by the well-known financial research community Special Situations, several hedge funds are facing difficulties, including Axebrook, Walleye, Engineers Gate, Lone Pine, Millennium internal pod, Verition pod, and Samlyn, mainly involving large redemptions, shutting down internal teams, or changing PMs.It is worth mentioning that during the major turbulence in the U.S. stock market in July this year, the AI hedge fund Situational Awareness also encountered a similar incident, with fund assets shrinking by 67%, and subsequently reached an emergency exit deal with Citadel, selling most of its publicly traded stock holdings at a discount.
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