The AI trade is struggling more than EVER: The Broad US AI Basket dropped -13% in October, it largest monthly DROP EVER. At the same time, the S&P 500 excluding AI stocks surged +8%, its best monthly performance since 2022. The S&P 500 ex-AI is now up +14% year-to-date and has risen to an all-time high. Meanwhile, Magnificent 7 stocks fell -6% in October, while the S&P 500 excluding the Mag 7 rose +1%. Lastly, the Nasdaq 100 dropped -3.5% on Friday, posting its biggest monthly underperformance against the S&P 500 Equal-Weight Index since 2001, when the dot-com bubble burst. Investors are losing faith in the AI theme.