Goldman Desk: "The Forceful Rotation Below The Surface Has Been A Shock For Many Portfolios"

Another rollercoaster week for stocks ended with S&P sliding 1% on Friday - from a new all time high hit the previous day - to close at 6,827, despite a Market on Close of $3BN to buy (most likely due to CTAs who are now buyers in every scenario). Others fared worse: Nasdaq closed down -191bps to 25196 as both AVGO and ORCL tumbled on rising AI spending concerns; the Russell2K slid 146bps to 2,552 while the Dow was the best performer, down only 50bps to 48,458. 

As noted above, it was another big move lower for momentum, driven primarily by AVGO (-12%) and ORCL (-4.5%). Flow was predominately macro driven with ETFs tracking 36% of tape (vs a 28% YTD avg) as hedge funds once again hedged by shorted risk using macro products. Here is Goldman's desk on why markets were disappointed by AI, again: