tech
Jim Cramer says one hedge fund's collapse cleared the way for tech's rally
CNBC's Jim Cramer said the collapse of AI-focused hedge fund Situational Awareness removed a major source of forced selling.
TL;DR
- The collapse of AI-focused hedge fund Situational Awareness has removed the biggest obstacle for tech stocks.
- The fund's forced liquidation of its leveraged portfolio created a surplus of shares, pushing down stock prices.
- With forced selling removed, earnings are now the primary driver of tech stock performance.
- Enterprise software, particularly ServiceNow, has seen a rebound as the sector benefits from the lack of sellers.