AI investors hedge with options and swaps as tech stocks sell off

FinanceInternationalThe Jerusalem PostNov 1, 2026, 3:38 PMAI summary

Amid falling AI stocks and rising borrowing costs, investors are turning to put options and credit-default swaps to protect gains and limit losses, according to The Wall Street Journal. Friday's selloff wiped out more than $1 trillion in market value: the Nasdaq 100 fell 3.4%, the S&P 500 dropped 1.8% and its technology sector lost more than 4.2%. The cost of insuring debt from major tech companies including Amazon, Alphabet, Microsoft, Meta and Oracle rose to its highest level since 2021.

In 40 seconds

Investors are using put options and credit-default swaps to hedge against a downturn in the AI sector.
Friday's selloff erased more than $1 trillion in market value; the Nasdaq 100 fell 3.4% and the S&P 500 1.8%.
The cost of insuring debt from Amazon, Alphabet, Microsoft, Meta and Oracle reached its highest level since 2021.

Read the full story at The Jerusalem Post

IASummary generated by artificial intelligence from a story by The Jerusalem Post. It may contain errors: the original source prevails.

inteligencia artificial
mercados
acciones tecnológicas
derivados
Wall Street

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AI investors hedge with options and swaps as tech stocks sell off

In 40 seconds

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