Wall Street is burning. Hedge funds are facing their worst margin call wave since the COVID crash, as $6 trillion evaporated from global markets in a matter of days.
The catalyst? Donald Trump. His newly announced tariffs triggered a full-scale trade war, slamming stocks, commodities, and investor confidence. Hedge funds are now scrambling for liquidity, selling whatever they can — and fast.
📉 Margin Calls Explode: The Worst Since 2020
On Monday, panic swept through Wall Street. Major banks began issuing urgent margin calls, demanding additional collateral from hedge funds whose portfolios plummeted. According to insiders, this is the largest wave of margin calls since early 2020.
“Rates, equities, oil — everything dropped at once. The sheer scope of the move triggered margin calls across the board,” said one senior broker.
Data from Morgan Stanley revealed that Thursday was the worst single day for U.S. long/short hedge funds since 2016 — with the average fund down 2.6% in just 24 hours.
🧨 Tariffs Spark Chaos: S&P 500 Suffers Worst Week in Five Years
Trump’s aggressive tariff announcement sent shockwaves around the globe. In retaliation, countries like China responded swiftly — and the S&P 500 plunged 9% in a week, marking its worst seven-day stretch since the early pandemic.
Some funds had already started de-risking weeks earlier — but markets turned too fast. The sudden reversal left many with no time to rebalance before losses escalated.
🥇 Even Gold Wasn’t Safe
Gold, long considered a safe haven in market turmoil, tumbled 2.9% on Friday, shocking investors. By Monday, prices hovered around $3,030 per ounce.
“Gold was used to meet margin calls,” said Suki Cooper of Standard Chartered. “Funds were selling it for liquidity.”
Despite the pullback, gold remains up nearly 16% year-to-date — but the flight to safety now comes with a price.
🗣️ BlackRock CEO Warns of Rising Global Anxiety
Just days before Trump’s tariff shock, BlackRock CEO Larry Fink released a stark warning. In his annual letter to investors, he wrote:
“Protectionism is back. The global economy is more fragile than it’s been in years.”
Fink noted that market expansion and globalization lifted over 1 billion people from poverty — but left millions in developed nations behind.
“Capitalism worked. But for too few people,” he said.
🌍 U.S. Investors Flee Offshore
While Trump turns inward, American investors are looking outward. UK wealth managers report a surge in demand from U.S. clients seeking to shield their portfolios from domestic chaos.
Firms like Rathbones, Schroders, and RBC Brewin Dolphin confirm a spike in offshore capital flows driven by fear of prolonged trade conflict.
Gold funds, in particular, are seeing their fastest inflows since the height of the pandemic.
🔍 What’s Next?
Global markets are volatile. Hedge funds are bleeding. Trust is evaporating. And Trump’s policy decisions have reshaped the game once again — in just days.
Wall Street is having a Trump Monday.
And this might be just the beginning.
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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
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Trump Monday: Hedge Funds in Crisis as Market Meltdown Sparks Historic Margin Calls
Wall Street is burning. Hedge funds are facing their worst margin call wave since the COVID crash, as $6 trillion evaporated from global markets in a matter of days. The catalyst? Donald Trump. His newly announced tariffs triggered a full-scale trade war, slamming stocks, commodities, and investor confidence. Hedge funds are now scrambling for liquidity, selling whatever they can — and fast.
📉 Margin Calls Explode: The Worst Since 2020 On Monday, panic swept through Wall Street. Major banks began issuing urgent margin calls, demanding additional collateral from hedge funds whose portfolios plummeted. According to insiders, this is the largest wave of margin calls since early 2020.
“Rates, equities, oil — everything dropped at once. The sheer scope of the move triggered margin calls across the board,” said one senior broker.
Data from Morgan Stanley revealed that Thursday was the worst single day for U.S. long/short hedge funds since 2016 — with the average fund down 2.6% in just 24 hours.
🧨 Tariffs Spark Chaos: S&P 500 Suffers Worst Week in Five Years Trump’s aggressive tariff announcement sent shockwaves around the globe. In retaliation, countries like China responded swiftly — and the S&P 500 plunged 9% in a week, marking its worst seven-day stretch since the early pandemic. Some funds had already started de-risking weeks earlier — but markets turned too fast. The sudden reversal left many with no time to rebalance before losses escalated.
🥇 Even Gold Wasn’t Safe Gold, long considered a safe haven in market turmoil, tumbled 2.9% on Friday, shocking investors. By Monday, prices hovered around $3,030 per ounce.
“Gold was used to meet margin calls,” said Suki Cooper of Standard Chartered. “Funds were selling it for liquidity.”
Despite the pullback, gold remains up nearly 16% year-to-date — but the flight to safety now comes with a price.
🗣️ BlackRock CEO Warns of Rising Global Anxiety Just days before Trump’s tariff shock, BlackRock CEO Larry Fink released a stark warning. In his annual letter to investors, he wrote:
“Protectionism is back. The global economy is more fragile than it’s been in years.”
Fink noted that market expansion and globalization lifted over 1 billion people from poverty — but left millions in developed nations behind.
“Capitalism worked. But for too few people,” he said.
🌍 U.S. Investors Flee Offshore While Trump turns inward, American investors are looking outward. UK wealth managers report a surge in demand from U.S. clients seeking to shield their portfolios from domestic chaos. Firms like Rathbones, Schroders, and RBC Brewin Dolphin confirm a spike in offshore capital flows driven by fear of prolonged trade conflict. Gold funds, in particular, are seeing their fastest inflows since the height of the pandemic.
🔍 What’s Next? Global markets are volatile. Hedge funds are bleeding. Trust is evaporating. And Trump’s policy decisions have reshaped the game once again — in just days. Wall Street is having a Trump Monday. And this might be just the beginning.
#TRUMP , #WallStreetNews , #marketcrash , #TradingCommunity , #TrendingTopic
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“