JPMorgan: AI Stock Selloff May Ease as Investors Cut Positions

The signal here is about positioning, not fundamentals: JPMorgan's read is that the selling has been driven by crowded AI and semiconductor exposure being unwound, and that gauge has already come well off its peak. That matters most for momentum and trend-following strategies, which amplify moves in both directions and are now less extended. Whether the reduced positioning actually caps further downside is the open question, since de-risking can continue even from lower levels if sentiment keeps deteriorating.