finance
U.S. Margin Debt Hits $1.4 Trillion
U.S. investors currently hold $1.4 trillion in margin debt. Margin debt and leveraged ETFs contributed to volatility in South Korea’s market that spilled into U.S. trading last week alongside a tech selloff. South Korea announced a $1 trillion AI investment fund.
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U.S. investors hold $1.4 trillion in margin debt as they increase bets on artificial intelligence infrastructure. Semafor reported that this borrowing, combined with growth in leveraged exchange-traded funds, amplified swings that began in South Korea’s market and reached U.S.
Trading last week. A tech selloff occurred in U.S. markets during the same period. Leveraged ETFs amplify the price movements of the underlying stocks they track, according to the report. South Korea’s government announced a $1 trillion AI investment fund on or before June 29, 2026.
Semafor noted that the fund announcement indicates Seoul, like other governments and major technology companies, expects the AI chip expansion to continue. Analysts cited by The Wall Street Journal stated that leveraged ETFs supercharge gains in a bull market but that what goes up fast can crash down even faster.
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