Markets have been experiencing absolutely insane moves, according to Goldman’s mid-day wrap. Despite yields reaching their highest levels since January 2025, with the back end of the curve reaching its highest levels since 2007, the markets are recovering sharply off the lows as unwindy price action continues. The 10yr yield touched its highest level since Jan 2025, while the NDX fought back to unchanged and the SPX was down only 15bps. Our SPX ex AI basket and SPX ex Mag7 basket both outperformed, gaining +11bps.

The volatility in the momentum factor continues to dominate conversations, with our high beta momo basket down 60 bps today but recovering from the lows of the session. The GS TMT Mo’ Pair hit down ~22% from the local highs this morning, matching the biggest drawdowns we’ve seen since the AI cycle kicked off in early 2023. Our TMT Momentum pair is now green on the day, gaining +70bps and reversing almost 9% off the lows intraday.

The long leg of momentum continues to be highly correlated with AI themes, according to our trading desk. While there is still a steady drumbeat of concentration into Semis / AI, some of the “manic” buying/stopping-in seen on the desk in early April has materially tapered off, setting the stage for this Mo’ wobble. The most asked about single stock mover today was AMZN, down -3%.

Consumer earnings are topical today, with consumer discretionary selloff good for the worst quarterly underperformance since Covid. HD gained +83 bps on an EPS beat with guidance reaffirmed, and April exit rate was soft but they implied on the call May was better now that some weather headwinds were behind them. However, it feels like the bottom is somewhat defined here at 19x, but the markets will struggle to really recover when yields are the entire focus of the market. Elsewhere, AS gained +450 bps on EPS beat, with a decent beat expected and a bigger beat than anticipated.