US stock sell-off wipes out $3.7T as forced selling builds

U.S. stocks have lost approximately $3.7 trillion in market value during Thursday’s sell-off, as retail selling spread to hedge funds and asset managers before automated trading strategies deepened the losses. Retail investors’ net selling ranked behind only two sessions during the March 2020 pandemic shock. Nomura estimated $7 billion in potential dealer selling for each further 1% market decline. Volatility-control funds faced an estimated $61 billion reduction in stock exposure as market turbulence grew. Goldman Sachs estimated technology-focused hedge funds lost more than 4% during Thursday’s trading session. According to Bloomberg’s Nov.

Source: crypto.news