Good Morning Mail

Global markets faced a sharp risk-off reversal as rising oil prices and hot US inflation triggered a bond selloff and stalled the AI-driven tech rally. Momentum trades are reversing as Goldman Sachs pushes back Fed rate cut expectations into late 2026.

Key Takeaways

• 1.AI and Semiconductor momentum has stalled due to overbought technicals and rising macro headwinds, including higher yields and oil prices.
• 2.Global markets experienced a sharp reversal and bond selloff triggered by Brent crude rising above $109/bbl and high US inflation data.
• 3.Goldman Sachs GIR has delayed Fed rate cut forecasts to December 2026 and March 2027 following hot PPI and CPI data.

Table of Contents

• U.S. Recap
• Europe
• Asia
• Rates
• Chart(s) of the Day
• Momentum has returned 25% over the past three months
• S&P 500 returns after 3-month Momentum rallies of 20%+
• Sector contribution to the S&P 500 YTD return
• Trajectory of the sharpest 3-month Momentum factor rallies since 1980
• Closed Markets
• Key Macro Events Today
• Sector and Factor Rotations
• Markets in a Nutshell

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