US Equities Color: AI Angst Continued

US equities finished mostly flat despite massive underlying de-grossing and a 3-sigma rotation out of Software into Semiconductors. Stronger-than-expected payroll data (+130k) was partially attributed to methodological changes in business formation estimates.

Key Takeaways

• 1.The S&P 500 closed flat but masked significant internal 'de-grossing' and sector volatility driven by AI-related positioning.
• 2.Extreme rotational pressure was observed in the Long Software vs. Short Semis pair, which saw a 3-sigma move lower (-7.5%).
• 3.January's Nonfarm Payrolls (NFP) surprised to the upside at +130k, though Goldman's GIR team suggests the 'birth-death' model change boosted the figure by ~70k.

Table of Contents

• U.S. EQUITIES COLOR: AI ANGST CONTINUED
• Notice to Australian Investors
• Additional Disclaimers
• Notice to Brazilian Investors
• Notice to Investors in the European Economic Area
• Notice to Investors in Korea
• Notice to Investors in Japan
• Notice to Investors in New Zealand
• Notice to Investors in Switzerland

Document Preview

Page 1 of 4

Subscribe for full accessStart Free Trial