Wall Street Conviction Frays on Trades Riding Out AI, War Shock

One by one, high-conviction trades on Wall Street are falling out of favor.

USO, the biggest US ETF tracking crude oil, is on pace for its steepest monthly outflow since 2009. SOXX, one of the largest semiconductor funds, is poised for its second-largest weekly withdrawal ever — a week after reeling in record cash. Both are among the market’s most-crowded trades. Both keep paying off. Yet risk-minded investors are cashing out.