The market took a turn for the worse today, with rates driving the sell-off and single-stock pain continuing. Despite the five-year high PMI print, the broader market failed to rally, with only a few sectors managing to eke out gains. The focus remains on the agent trade, with speculation around OpenAI’s impending consumer agent launch keeping the at-risk complex heavy. Meanwhile, Brent oil has rebounded above $102 after five consecutive sessions of relief, suggesting that geopolitical tensions are still in play.

In terms of macro drivers, rates remain the key factor, with the recent move higher sparking concern among investors. However, it’s worth noting that the single-stock pain is still the dominant theme, with Agentic AI Losers down another -1.3% and the winners leg also lower on the day. This suggests that weakness is being expressed through shorts rather than a rotation into beneficiaries.

Looking ahead, there are several catalysts in focus, including Mark Zuckerberg’s Meta Connect keynote tonight and OpenAI Dev Day on September 29. These events could provide further clarity on the agent trade and its implications for the market.

In terms of economic data, the hot PMI print from yesterday was highlighted by S&P, who noted that “barring the spike in demand following the opening up of the economy after the COVID-19 lockdowns, the latest improvement in business activity is the greatest recorded since early 2015.” However, some have questioned the strength of the level of business surveys, with concerns around nominal bias potentially influencing the survey index.

Overall, the market remains uncertain and volatile, with rates and single-stock pain continuing to drive the narrative. As always, it’s important to stay informed and adapt to changing conditions in order to navigate these complex times successfully.