The Goldman mid-day wrap provides a comprehensive analysis of the US markets, offering insights into the current market trends. In today’s wrap, we see a continuation of the previous day’s selling pressure, with global indices experiencing significant declines. The Korea Kospi was particularly hit hard, finishing down by 7%, while the S&P 500, Nasdaq, and Russell 2000 also saw substantial losses.

The market action was described as “ugly” and many expected to see such a performance in yesterday’s session. The “Everything lower” tape saw the SPX, NDX, RTY, and over 450 names trading in the red. Political news had a positive impact on the market, with Iran’s potential loss of missile capacity garnering attention.

The biggest movers of the day included Memory GSTMTMEM, which fell by 745 bps following significant declines in Korean memory stocks overnight (Hynix -18% and Samsung -17%). Metals GSXUMETL also saw a substantial decline of 610 bps. The high beta momo GSPRHIMO was hit hard, driven by weakness in the long leg of momentum with High Beta 12m Winners GSXUHMOM and Global Rare Earths GSXGRARE both experiencing significant declines. Bitcoin Sensitive GSCBBTC1 also saw a notable decline of 513 bps.

Software remains in focus, with IGV outperforming today by 80 bps, while GS Software and GS AI at Risk basket were both up by 70 bps and 50 bps, respectively. Goldman Sachs’ desk flows indicate continued unwind/degrossing and abatement of supply in the semiconductor and semi-equipment sectors globally, while long exposure in these sectors is at record high levels.

In terms of energy, the market is awaiting the potential fade in energy after yesterday’s notable decline. The question on everyone’s mind is how violent the fade can be in energy, given the recent headlines surrounding Iranian production and four ships attacked near Oman. Private credit concerns are also still in focus following Blackstone (BX) headlines this morning, with the firm experiencing $1.7 billion of net outflows in the first quarter and redemption requests from its private credit fund rising to 7.9% of its assets.