The Great Retail Rotation

Retail rotates

Hyperscaler earnings dramatically improved sentiment over the past week, lifting the S&P 500 to fresh highs, reigniting technology leadership and putting the momentum unwind on pause. While overall retail activity remained relatively muted, the underlying flows became notably more constructive. Investors took profits in hyperscalers and software following the earnings-driven rally, but rotated back into memory stocks, semiconductors and Technology ETFs, suggesting retail may once again be warming to the broader AI trade.