Analyst: AI-driven stock market trends are becoming increasingly volatile.

Golden Finance reported that on June 26, Tickmill Group analyst Patrick Munnelly stated in a report that the AI-driven stock market is becoming increasingly volatile. The combination of leveraged retail exposure, crowded long positions in semiconductors, and fragile market sentiment surrounding memory chip demand has created a market highly susceptible to negative news. The heavy losses in Asian stock markets on Friday indicate that the market can "swing from relief to fragility in an instant." Meanwhile, the inflationary buffer brought by oil has disappeared, replaced by renewed security risks in the Strait of Hormuz. While this does not necessarily mean the AI trade has broken down, crowded positions imply that even fundamentally positive news may struggle when the broader market reverses.
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