Yesterday’s market wrap saw a mix of gains and losses across various sectors, with some popular themes taking a hit. Global Rare Earths (GSXGRARE) fell by 10%, Quantum Computing (GSXIQNT1) declined by 7%, and Nuclear (GSXURANI) dropped by 3%. These losses were partially offset by gains in the Momentum Winners/Losers, Renewables, Cyclicals, and popular HF shorts, which were down by 1-4%.

Interestingly, artificial intelligence (AI) partnership headlines seemed to be driving stock prices again, with Amazon (AMZN) and NVIDIA (NVDA) leading the charge. As a result, our Mega Tech vs Non-Profitable basket (GSPUMENP) had its fourth-best day of the year.

Activity levels were active to start the month, but Retail activity seemed quieter out of the gates. The top 10 most active names accounted for only 25% of total tape volumes, while S&P volumes were up by 10%. This suggests that institutional activity may be picking up, especially after 22% of Active Mutual Funds closed their books on Friday.

Overall, the market seems to be experiencing a mix of sentiment, with some investors optimistic about the potential of AI and other growth areas, while others are taking profits in more established sectors. As always, it’s important to stay informed and adapt to changing market conditions.