Defensive Rotation Hints At Deeper Market Trouble

By Jan-Patrick Barnert, Bloomberg Markets Live reporter and strategist

The ongoing stock rotation, nearing key technical thresholds and looming seasonal weakness are putting markets on edge amid the recent pullback.

It’s remarkable how this bull run since the April low has avoided major drawdowns. Negative reactivity in equities was briefly on display in the sessions after the market hit its nadir for 2025, but arguably this never amounted to a correctional force.