The Goldman mid-day wrap reports on the current market conditions, highlighting choppy price action and a fade into the red for the market. Despite opening higher, the market saw a significant move lower around 10am EST with no particular headlines driving the decline. The AI and tech sectors led the way down, with the NDX now down -275bps after opening in the green. However, there was some positive breadth, with 353 names in the SPX trading in the green.

The memory sector saw strength at the top of the leaderboard, following a strong overnight session in Asia and a notable inflow of $450m in DRAM overnight. The GSTMTMEM basket was up +412bps, with the DRAM ETF also gaining +1%. Our ETF desk notes continued demand from both institutional and retail players.

However, the AI themes reversed sharply from their highs, with the Mag7 GSX1MEGA dragging the market lower. The AI basket GSTMTAIP was down -427bps, while the leaders GSX1AIL1 were down -380bps. Data centers GSTMTDAT and AI software GSTMTAIS also saw significant declines, with the optical sector GSXUOPTI falling -800bps (-2.3 SD lower).

In other sectors, oil prices were lower following Trump’s more upbeat commentary about ending the conflict with Iran. WTI dropped below $90 a barrel, and treasury yields eased in tandem with 10Y oscillating around 4.54%. Strength in consumer staples GSXUSTAP and consumer discretionary GSXUCOND were standout performers.

In terms of volumes and liquidity, both market volumes and ETF volumes were elevated thus far. However, top-of-book liquidity was still suppressed, sitting at $5.6m, down 37% from the 20DMA.