Wall Street traders lose $52 million on AI stock bets as Fear & Greed Index hits 18

CNN's Fear & Greed Index sank to 18 on Friday, deep in "Extreme Fear" territory after the Nasdaq fell 4.5% for the week. Traders lost nearly $52 million on leveraged AI and chip stock bets within 10 minutes on Saturday while Wall Street was shut. CoreWeave fell about 25% and its bonds hit new lows amid a broader AI debt glut. Hot inflation data revived bets on a Federal Reserve rate hike. The Philadelphia Semiconductor Index fell 11.4% for the week, its worst run since April 2025. Stocks including WDC, STX, MU and SNDK dropped more than 3%. Trading brakes designed for stock markets do not apply to perpetual futures and crypto contracts, leaving prices vulnerable to forced liquidations.