Deleveraging Extends Rout

30%its chance, of the story’s futures

−1.4%on the S&P 500, if it happens

The sharp drawdown may force margin unwinds, quant de-risking and retail redemptions in AI-themed funds. This would extend the selloff without necessarily becoming a broader financial crisis.

What it moves

Technology−2.6%
Finance−0.7%
Riskier companies' borrowing costs▲ up
Market volatility▲ up

Sectors in percent; other series by direction only.

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.

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