Markets were down across the board today, driven by continued geopolitical tensions and AI chip export headlines. The Russell 2000 (RTY) was down a significant 265 basis points, while the S&P 500 (SPX) and the Nasdaq Composite (NDX) were down 127 and 120 basis points, respectively. Despite these declines, there were some notable performers in the market today.

OpenAI’s decision to abandon checkout for shopping triggered a bid in AI stocks, with Risk (GSTMTAIR) and Domestic Internet (GSTMTINT) leading the way with gains of 181 and 124 basis points, respectively. Meanwhile, software stocks continued their recent surge, with IVG (IGV) up for the fourth day in a row and 13% off its lows. Key drivers of this strength include oversold conditions, a more supportive macro backdrop, and partnerships with incumbents rather than displacement.

Looking at liquidity metrics, ETF exposure remains elevated at 40%, alongside light top-of-book liquidity of $4.8 million. CTAs are sellers in a flat tape of $5.56 billion into the US, with this number increasing to $18.87 billion in a down tape.

Finally, global volatility remains elevated, with 6-month at-the-money implied vol in NKY (100th percentile), KS200 (100th percentile), Gold (97th percentile), Platinum (100th percentile), Aluminum (94th percentile), and Oil (97th percentile) reaching its highest level since the VIX was at ~89 during the global financial crisis.