US Equities Color: Momentum Continued

US equities closed lower as the momentum factor unwound in response to the US 10YR yield rising to 4.67%. Markets are seeing a taper in the AI/Semis buying frenzy with defensive positioning and short covering appearing in the Consumer sector.

Key Takeaways

• 1.The momentum factor is experiencing a significant unwind/wobble as investors focus on rising interest rates.
• 2.The US 10YR yield has surged ~45bps from April lows, a 2-standard deviation move that is traditionally problematic for equity markets.
• 3.While AI and Semiconductors still see concentration, 'manic' buying has tapered, leading to marginal rotation into Software.

Table of Contents

• 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

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