Yesterday’s trading in US equities was characterized by a pick-up in single stock dispersion, despite a softer core CPI. According to the UBS high touch flow picture, hedge funds are net buyers, while long only investors are taking profits. The day saw a choppy trade with earnings dislocations (JPM, DAL), continued geopolitical tension (Iran/Russia), and tariff uncertainty (Supreme Court decision likely Wednesday, Trump commentary overnight, China chip restrictions).

The UBPTMOMO Index added 1.5%, with some of the recent themes continuing to work. In technology, software vs semis (-3.3%) and down 13% were under pressure, while energy producers (+1.7%) and defense primes (+1.1%) saw gains amid continued Iran tensions. Financials saw profit taking after JPMorgan’s earnings, with the credit card rate cap story being a drag. Healthcare was also lower on a slew of conference-related idiosyncratic headlines, with Med Tech / Tools leading the decline.

Looking at flows, the UBS cash desk is 48/45/7% better for sale, with long only investors 45/55% better for sale, buying industrials, healthcare, financials, staples, and selling tech, discretionary, telcos. Hedge funds are 53/34/13% better buyers, buying discretionary, financials, energy, and selling tech, industrials, healthcare, utilities, materials.

Overall, the choppy trading day highlights the ongoing volatility in US equities, with a mix of positive and negative catalysts driving stock-specific movements. As investors navigate these uncertain times, it’s important to stay informed and adaptable in one’s investment strategies.