"A Shoot First, Think Later" Market, As Both Goldman & JPM See Feverish Rotation Out Of Digital, Into The Physical World

AI contagion was the theme of the week, with victims of "AI disruption" extending beyond the usual suspects (Software), and slamming Private Credit, Insurance Brokers, Financials/Broker/Wealth Managers, Real Estate Service stocks, and finally, Logistics and Truckers. 

And then it got worse: yesterday’s broad-based risk off - which culminated into the biggest shorting of software stocks since the global financial crisis - extended into Precious Metals and the Asia session this morning (before recovering), while Defensives and Bonds benefitted from the flight to safety (or rather, flight out of AI). Today, Macro came back into the mix, with mercifully soft US CPI short-circuiting the relentless selling.