Good afternoon. QQQs -70bps as factors reversed today with AI semis leading us lower while large cap internet outperformed. Basically everything that was outperforming underperformed today and vice versa. Despite overall weakness in indexes, plenty of pockets of strength.
Why the sell off? MS called out some quarter dynamics that said there were clearer sources of US equity supply than there are sources of demand into end of the month/quarter. Others cited the SPX/NDX rebal flows. We also posted this chart Tues. afternoon about how the next 7-8 days is one the weaker seasonal periods all year:
Oil was up which led the biggest out performance of XLE vs XLK since first day of the year:
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