J.P. Morgan Warns Hedge Funds Borrowing Too Much After July Sell-Off

J.P. Morgan's 2026 outlook warns hedge funds are borrowing too much to invest. In July, that forced funds to sell fast, sinking a major chip-stock index 13.2% and erasing nearly 3% of hedge fund gains, per Reuters citing JPMorgan. The panic was about borrowed bets piling up on AI — not AI itself weakening.