QQQs flat with a nice 1% last hour rally to take us into the weekend as SPX was up close to 1%, putting in a nice hammer on the daily. Whereas yesterday’s degrossing pain was significant (large cap longs underperformed shorts by 3 sigma; 10th worst 1 day move in 8 years), today’s action was less un-windy which was helped by the last hour of trading. DELL/MRVL/MDB sell off dominating most discussions today. The MRVL move surprised me the most given print seemed fine. Telecom/Media outperformed while Semis and sw underperformed.
On the macro front, treasuries had a strong bid today with yields down 5-7bps across the curve on some weaker data (chicago PMI missed and Atlanta Fed cut GDP forecast). The odds of a Fed cut by the 9/18 meeting are up to 65% vs 56% before today’s data with 38bps of aggregate reductions assumed for the year (h/t Vital Knowledge)
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