Leveraged ETFs Amplify Market Volatility: Goldman Sachs Warns Semiconductor Pullback Not Cycle Peak, Cautions on Liquidity Crunch

Recent tech sector volatility sparked debate over semiconductor cycle peaks. Goldman Sachs and Leuthold Group suggest the pullback stems from leveraged trading-induced liquidity squeezes, not fundamental reversals. Forced ETF liquidations in Korea and surging US margin debt are creating fragile market structures, raising risks of sharp corrections if sentiment shifts.

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