The market saw a softer performance today, with the S&P 500 and Nasdaq indices experiencing declines of 22 basis points and 80 basis points, respectively. This is not unexpected given that the bond market is closed for Veterans Day. The lighter market volumes (-27% versus the 20-day moving average) may have contributed to the momentum reversal seen today, with GSPRHIMO falling by 300 basis points.

Despite the lower market volumes, the top of the book was higher than expected at $11 million, representing a gain of 11% compared to the 20-day moving average. This is a positive sign for investors.

The AI sector saw some pressure today, with the AI basket GSTMTAIP falling by 250 basis points and AI software GSTMTAIS declining by 150 basis points. This comes after SoftBank’s sales disclosure and CRWV’s (-14%) earnings and guidance cut due to delays in powered shell delivery associated with a data center provider. Investors are now eyeing the next AI catalyst, which is AMD’s investor day today at 12pm EST, where they will be watching for data center chip forecast.

Our floor’s activity levels are currently 3 out of 10, with HFs skewed 4% better for sale and LOs skewed 3% for sale, with supply concentrated in consumer discretionary and industrials versus insignificant buying in info tech and comms services.

Overall, today’s market performance suggests that investors are taking a cautious approach, possibly due to the Veterans Day holiday. However, the positive top-of-book performance and the upcoming AMD investor day could provide opportunities for growth in the AI sector.