In the latest UBS S&T market wrap, the focus is on the Nasdaq’s impressive buying streak, which has resulted in excess flow of $72 billion, more than double the S&P 500’s $29 billion. This unprecedented buying activity has been driven by a combination of retail demand and short covering, with single stocks leading the way.

The Nasdaq saw $77 billion in buying from the open to 3:30 pm, followed by $5 billion in selling in the final 30 minutes. This surge in buying has led to elevated activity in futures markets, with the Nasdaq 100 (NQ1) and S&P 500 (ES1) futures volumes reaching 121% of average.

The S&P 500 recorded $63 billion in buying through 3:30 pm before $34 billion in selling in the final 30 minutes. While some of this late selling may have been related to risk-control activity executed at the end of the day or through market-on-close orders, the majority of the buying has been driven by UBS RMM clients, who have bought the rally for a second consecutive day at 88% and the 74th percentile versus the past three years.

This buy-the-rally behavior is a particularly strong bullish signal, with the largest industry buy tilt in semiconductors across stocks and ETFs. Additionally, CTA positioning could add further demand, with Russell 2000 (RTY1) futures crossing two buy triggers today, while eight additional buy triggers across ES1 and RTY1 are within a 2% rise. Exposure remains low at the 9th percentile versus the past three years for ES1, the 8th percentile for NQ1, and the 14th percentile for RTY1.

Leveraged ETPs generated an estimated $25.5 billion buy rebalance, including $21.1 billion of buying in Nasdaq and technology exposure. The largest estimated stock purchases by dollar value were NVDA, AMD, MU, AVGO, and AAPL.

Overall, the UBS S&T market wrap suggests that the Nasdaq’s buying streak is likely to continue, with bullish signals building and limited risk-control selling. As the market continues to show strength, investors may want to consider adding exposure to the tech-heavy Nasdaq and leveraged ETPs for maximum returns.