The stock market gapped lower to start the week, pressured by the latest rise in long-term bond rates and the Wall Street Journal's reporting that artificial intelligence (AI) hyperscalers are on the hook for another $3 trillion in debt and purchase obligations over the next few years.
The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index ($IUXX), "gamma flipped" at 725, forcing market makers to follow the market. In other words, they're forced to sell as prices fall in order to hedge their open positions (e.g., puts they have sold).
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