Markets and Macro

The report highlights a significant pullback in AI hyperscalers while noting resilience in the broader equity market. Despite volatility, strong technicals in non-AI sectors provide a stabilizing force.

Key Takeaways

• 1.Core AI hyperscalers are experiencing their worst monthly performance since Meta's IPO, highlighting concerns over capex sustainability.
• 2.Market breadth remains resilient outside of AI-specific names, with S&P ex-AI and equal-weighted indices reaching new highs.
• 3.Hedge fund positioning shows extreme disparity, with AI hyperscaler exposure at 3-year lows while AI infrastructure firms are at 3-year highs.

Table of Contents

• The AI Trade
• Asia Markets and China
• Europe and Brexit
• Federal Reserve and Dollar
• Flow of Funds and Positioning

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