Goldman Sachs
July 6, 2026
Us Flows And Themes
Weekly UpdateCommoditiesEquitiesRates CreditEnergyFinancials
US equity markets rallied on cooling job data, while hedge funds navigated a volatile week characterized by momentum factor unwinds. Focus remains on upcoming Q2 bank earnings and the sustainability of the AI trade.
Key Takeaways
- 1.Softer June Nonfarm Payrolls (57K jobs) cooled Federal Reserve rate hike expectations, shifting sentiment to a dovish outlook.
- 2.Hedge fund momentum strategies faced significant de-risking and alpha losses due to factor volatility and crowded positioning.
- 3.The Russell 2000 has outperformed significantly YTD, but the AI infrastructure tailwind is expected to diminish following recent index reconstitution.
Table of Contents
- Markets
- Macro/Geopolitics
- Positioning/Momentum
- AI/Corporates
- Week Ahead
- Momentum
- Hedge Funds
- Small Caps
- Semis Preview
- Banks EPS Preview
- Webcasts/Events
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Giulio Esposito
Securities
S&P 500RTYMETABACSMCI
Themes
AI Infrastructure Profit-TakingBank Sector Operating LeverageHedge Fund De-riskingLabor Market Cooling
Regions
North AmericaAsia PacificUnited States