The market has rebounded this morning, with lighter activity and stabilizing cryptocurrencies leading the charge. The AI theme continues to be a top performer, driven by headlines of ChatGPT/Gemini competition. Within the AI space, software (GSTMTAIS) and leaders GSX1AIL1 have seen significant gains, with +310 bps and +117 bps respectively. Retail favorites GSXURFAV have also surged forward, adding +187 bps to their performance.

The morning saw a roll-off of market highs, primarily driven by NVDA. The chipmaker saw massive call volume this morning, with many analysts pointing to its potential for growth. AMZN’s recent chip launch is also seen as a positive factor for NVDA, reinforcing the belief that many are looking to get a piece of the company’s moat.

Despite yesterday’s -366bps move, momentum has recovered with our high beta momentum basket adding +151 bps today. Strength in 12-month winners GSXUHMOM has helped stabilize the momentum factor.

Our flows indicate that we are currently a 3 out of 10 in terms of overall activity levels, with a slight bias towards buying. LOs (Leaders) are skewed better to buy, with demand in financials and communication services outweighing insignificant supply in healthcare and macro products. HFs (High-Frequency Trading firms) are skewed 4% better to buy, led by demand in industrials and macro products versus supply in consumer discretionary and staples.