"Debt Market Limits Are Real And Binding": Top Goldman Trader Says Market Is Pricing 2027 As The AI Peak

It's election day, and the AI trade is voting with its feet.

Even with energy giving back around 8% on Monday (normally the kind of gift tech bulls dream of), the tape simply "couldn't hold on," according to Goldman's head of EMEA one-delta trading, Rich Privorotsky. In his Tuesday morning note (available to pro subs) he runs through the carnage: Gen AI down 5%, AI healthcare down 4%, optical down 7.5%, neoclouds down 6%, while homebuilders rose 4%, alternatives 3.5% and value 1.6%. High momentum lost 7% in a single session.