Fed pause confidence is spreading across the street today—major institutions finally aligning on no hike this month. That's why high beta and AI names are catching a bid.
But here's the interesting part: institutional positioning is still light. Plenty of room to run as Q3 earnings approach. Hedge funds have been underweight for weeks, and if this sentiment holds, we're likely to see them start chasing into results.
The setup feels cleaner now. Risk hasn't deteriorated, conviction is building, and the path of least resistance for AI stocks may be higher into earnings season.
But here's the interesting part: institutional positioning is still light. Plenty of room to run as Q3 earnings approach. Hedge funds have been underweight for weeks, and if this sentiment holds, we're likely to see them start chasing into results.
The setup feels cleaner now. Risk hasn't deteriorated, conviction is building, and the path of least resistance for AI stocks may be higher into earnings season.