Global markets are experiencing high volatility and sector dispersion driven by AI disruption fears and geopolitical tension in the Middle East. Hedge funds are de-grossing at the fastest rate in months while looking for signs of de-escalation between the US and Iran.
Key Takeaways
- 1.AI software disruption fears (driven by Anthropic updates) are causing significant dispersion, with software underperforming semiconductors.
- 2.US equities saw a major de-grossing event by hedge funds, the largest in percentage terms since September 2025.
- 3.Geopolitical volatility in the Middle East remains a primary market driver, oscillating between escalation (US troop deployments) and peace talk rumors.
Table of Contents
- U.S. Recap
- Europe
- Asia
- Chart(s) of the Day
- A Meaningful Hit to Global Growth
- Closed Markets
- Key Macro Events Today
- Markets in a Nutshell
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Authors
Anton Tran
Securities
SPX99844716UNIGSTMTAIR
Themes
AI Disruption and Agentic CapabilitiesGeopolitical StagflationHedge Fund De-grossing
Regions
North AmericaEuropeAsia PacificUnited StatesJapanIran