Possible scenario
Defensive Rotation
−0.6%
Rather than a broad crash or a sharp rebound, hedge funds may rotate away from crowded growth exposure into lower-volatility equities. This would keep the overall index move contained while creating meaningful relative performance between defensives and AI-linked shares.
What it moves
- Utilities+1.1%
- Technology−1.0%
- Riskier companies' borrowing costs
- Market volatility
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