Goldman Prime Brokerage Spots A Remarkable Divergence Beneath The Market's Surface

Two months ago, Goldman's Prime Brokerage, the bank's most actionable client-facing division which keeps daily tabs on all the latest hedge fund activity and is happy to share the data with a select group of top clients, introduced the inaugural edition of the US Equities Weekly Rundown: a weekly must-read compilation that aims to consolidate the latest positioning and flows intelligence, market themes, and actionable ideas from thought leaders and risk takers across the GS franchise. It is an indispensable piece for every serious trader, and below we excerpt from the latest full report for the benefit of our premium and professional readers (full analysis available to our pro subscribers in the usual place).

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The S&P 500 rose for a second straight week and closed above 4,400 for the first time since 9/20, led by strength in large cap Tech as NDX outperformed R2K by ~600 bps – the largest spread in nearly 8 months. AI Beneficiaries, Mega Cap Tech, and Growth Software were among the biggest gainers on the week, while Most Short, Renewables, and Non Profitable Tech were under pressure.