G. Paco Gonzalez

Tech Stocks in Bear Market Territory: 1. SanDisk, $SNDK: -66% 2. Arm Holdings, $ARM: -64% 3. Coinbase, $COIN: -63% 4. Nebius, $NBIS: -62% 5. Seagate, $STX: -60% 6. Marvell Technology, $MRVL: -59% 7. ServiceNow, $NOW: -57% 8. Oracle, $ORCL: -56% 9. AppLovin, $APP: -54% 10. Circle, $CRCL: -54% 11. Super Micro Computer, $SMCI: -51% 12. Micron, $MU: -48% 13. Dell, $DELL: -47% 14. SpaceX, $SPCX: -47% 15. Qualcomm, $QCOM: -43% 16. Broadcom, $AVGO: -41% 17. AMD, $AMD: -39% 18. Robinhood, $HOOD: -38% 19. Alphabet, $GOOGL: -32% 20. Tesla, $TSLA: -32% 21. Palantir, $PLTR: -28% 22. TSMC, $TSM: -28% 23. Meta, $META: -26% 24. CrowdStrike, $CRWD: -26% 25. Nvidia, $NVDA: -25% The S&P 500 has now erased -$4 trillion in market cap since October 6th.

On today's stock market crash: As an investor, on days like today, you have to ask yourself one question: What fundamentally changed over the last 24 hours? The shift in the fundamental backdrop cannot be attributed solely to the Midterm Election results; markets had already largely priced in the outcome. So, what changed between yesterday and today? What is the fundamental reason for today's decline? One of the most likely catalysts is growing concern about a potential "ban" on AI, or at the very least, severe regulation of the industry. Over the last 24 hours, Democratic lawmakers have publicly called for restrictions on advanced AI development, including an outright "ban on artificial superintelligence." Frankly, an outright ban will not happen. Such a ban, if even possible to enforce, would effectively mean the US surrendering its position in the global AI race to China. Does this mean AI is "over" or today's stock market crash marks "the end?" Absolutely not. Rather, we believe we are witnessing a sudden shift in sentiment colliding with excessive levels of leverage, potentially triggering forced liquidations by several major institutional investors. Therefore, today's downturn is more technical than fundamental. This is not to discount the concerns around regulation, they are legitimate. But price action right now does not look orderly or rational. We are in the midst of the biggest technological revolution in human history. Zoom out and remain calm.

What's happening in stocks right now is crystal clear. Fundamentally, nothing has changed over the last 60 minutes. This is the product of record levels of leverage colliding with a sudden shift in market sentiment. Sentiment is the ultimate driver of price. For months, we have been commenting on the historic levels of leverage in today's markets. This is precisely what happens when sentiment reverses in an overleveraged market. We will have more to say on this shortly.

US semiconductor stocks have rarely been this volatile: Over the last 5 mins S&P 500 Semiconductors & Semiconductor Equipment Index has recorded 11 trading sessions in which at least 50% of its components fell -5% or more, the 4th-highest reading on record. By comparison, during the 2008 Financial Crisis, the index recorded 16 such sessions. The only other periods with more volatility were 2000 and 2002, following the Dot-Com Bubble burst. Furthermore, the S&P 500 Semiconductors & Semiconductor Equipment Index fell more than -5% on 12 trading days over the last 5 months. The index is now down -32% from its June peak, trading at its lowest level since April. Semiconductor stocks are experiencing historic volatility.

Tokenization is the biggest bull market in crypto. The total circulating supply of onchain tokenized equities just hit another record high, at $3.8 billion. This metric has now reached a new record high for 10 consecutive weeks, up +590% year-to-date. It has become increasingly clear that financial markets are moving toward tokenizing everything. Investors are demanding 24/7 markets, and tokenized assets are increasingly fulfilling that demand. Amid the shift, Jupiter, the largest onchain platform on Solana, reported that 70% of tokenized asset trading now occurs outside traditional market hours. Amid this surge in demand, the NYSE is developing infrastructure for tokenized equities and perpetual futures. The future of financial markets is onchain.