Today’s market activity saw a shift in institutional sentiment as retail players drove the majority of the day’s gains. Despite a quiet day on the institutional side due to the bond market holiday, retail investors were actively trading, with just three stocks making up 32% of overall trading volumes. This footprint was particularly notable in the Retail Favs basket, which saw a gain of 6.46% – its second-best day in the last three years.

Neoclouds, a term used to describe the rotation back into Tech stocks, are helping drive the follow-through buying in the market. According to our CTA math, there is meaningful demand in an up-tape over the next one week and one month. Semiconductors are leading the way, with a 17% gain in buy activity across our platform, driven by both HFs and LOs. The SOX index is approaching a key level, back within sniffing distance of the 200-day moving average at 10,865. This is remarkable given that NVDA has lost $430 billion in market cap this week, while SOX has gained 14% in the same time period.

The hyperscaler complex has lagged slightly in the broader re-risk, but it is clear that this group is being used as a source of funds, particularly with NVDA trying to claw back some of the lost market cap. Our overall activity levels are down 20% versus the trailing two weeks, but trading volumes are surging 13% versus the 10-day moving average. The floor tilts 13% better to buy, driven by demand from HFs. HFs are 18% better, with large buy skews across Tech and Cons Disc. LOs are slightly better to buy, selling Tech and Cons Disc to buy HCare, Comms Svcs, and Indust.