GREY BRIEFING #27: Ongoing sector rotations & the emergence of a potential peak?

The trading week was largely dominated by the new US inflation data and the fragile market structure. While the major indices such as the S&P 500 and the Dow Jones closed relatively stable on a weekly basis, there was significantly greater volatility below the index level. Interest-rate-sensitive growth stocks in the Nasdaq 100 in particular reacted sensitively to rising short-term yields. At the same time, there were more pronounced fluctuations in the crypto sector, particularly for Bitcoin, underscoring the increased vulnerability of highly liquid, leveraged market segments. Compared to the previous week, which was marked by stress in the crypto market and increased volatility, liquidity remained stable this week. Nevertheless, confidence remains selective: capital is flowing...