| Factor | Return | Z-Score | 5d Z | 20d Z | 63d Z | Category | Direction |
|---|---|---|---|---|---|---|---|
| MedTermTrend | +0.49% | z=1.30 | 0.13 | 1.31 | -0.20 | Style | 1-month moves trend |
| Residual Volatility | +0.44% | z=1.12 | 0.94 | 1.94 | 2.11 | Style | high volatility outperforms |
| Semis | +0.43% | 0.84 | 0.31 | 1.64 | 2.00 | Theme | semiconductors exposure outperforms |
| Leverage | -0.23% | z=-1.49 | 0.53 | 0.56 | -1.09 | Style | low leverage outperforms |
| China | -0.27% | z=-1.07 | 0.00 | -1.45 | -2.00 | Theme | china exposure underperforms |
MedTermTrend (z=+1.3) and Residual Volatility (z=+1.1) lead the session, driven by demand for high-beta AI hardware names. Dell (DELL) rose +17.10% and Hewlett Packard Enterprise (HPE) gained +10.56% to record highs on a $43 billion AI server backlog and higher analyst price targets. Qualcomm (QCOM) added +11.32% following an expanded multi-year AI digital chassis agreement with Stellantis.
Volatility holds a 63-day trend of z=+2.1, confirming that high-beta risk-taking is rewarded. This cross-sectional demand is right-tail driven, pulling up the broader semiconductor (SMH) and software (IGV) complexes. Software names are actively joining the hardware rally, with Workday (WDAY) gaining +5.05% on a first-quarter revenue beat that eased concerns about AI disruption, according to Reuters.
| Bucket | Avg Ret Pct |
|---|---|
| 1 | 0.52 |
| 2 | 0.70 |
| 3 | 0.03 |
| 4 | -0.23 |
| 5 | 0.65 |
| 6 | 0.17 |
| 7 | 0.36 |
| 8 | 0.69 |
| 9 | 0.06 |
| 10 | 0.40 |
| 11 | 0.86 |
| 12 | 0.21 |
| 13 | 0.23 |
| 14 | 0.60 |
| 15 | 0.92 |
| 16 | 0.41 |
| 17 | 1.10 |
| 18 | 1.00 |
| 19 | 1.94 |
| 20 | 2.18 |
Industrial breadth expanded on infrastructure catalysts. Ford Motor Co (F) gained +9.02% after securing a five-year battery storage deal with EDF to supply up to 20 gigawatt-hours of capacity for data center energy demands, according to Reuters. Meanwhile, Rocket Lab (RKLB) rose +7.37% to record highs following a $90 million Space Force contract, according to Barron's.
A coordinated regulatory crackdown on cross-border brokerages triggered forced selling in Chinese equities. The China factor fell to z=-1.1 today, accelerating a 63-day structural decline (z=-2.0).
Futu Holdings (FUTU) fell -28.13% after the CSRC proposed a $271 million fine and ordered a two-year wind-down of unapproved offshore investment services. This action pressured the broader tech and retail complex. Alibaba (BABA) fell -4.03% and PDD Holdings (PDD) lost -4.99%. Institutional offloading was visible at the fund level, with the KraneShares CSI China Internet ETF (KWEB) declining -2.66% on 2.4× its typical daily volume, according to kraneshares.com.
| Bucket | Ret 1D Pct | Ret 5D Norm Pct | Ret 20D Norm Pct | Ret 63D Norm Pct |
|---|---|---|---|---|
| 1 | 0.42 | -0.11 | 1.03 | 1.24 |
| 2 | 0.10 | 0.86 | 0.55 | 0.10 |
| 3 | 0.53 | 0.64 | 0.29 | 0.35 |
| 4 | 0.66 | 0.73 | 0.27 | 0.47 |
| 5 | 0.83 | 0.84 | 0.48 | 0.49 |
| 6 | 0.65 | 0.26 | -0.37 | -0.42 |
| 7 | 0.56 | 0.25 | -0.25 | -0.11 |
| 8 | 0.54 | -0.06 | -0.23 | -0.25 |
| 9 | 0.63 | 0.27 | -0.17 | 0.02 |
| 10 | 0.58 | 0.80 | -0.35 | -0.09 |
| 11 | 0.65 | 0.49 | -0.19 | -0.07 |
| 12 | 1.17 | 0.48 | 0.09 | -0.26 |
| 13 | 0.72 | -0.16 | -0.44 | -0.26 |
| 14 | 0.67 | 0.48 | 0.69 | 0.74 |
| 15 | 0.87 | -0.16 | -0.41 | -0.42 |
| 16 | 0.52 | 0.28 | -0.12 | -0.33 |
| 17 | 0.73 | -0.09 | -0.01 | 0.14 |
| 18 | 1.09 | -0.33 | 0.33 | 1.02 |
| 19 | 1.06 | -0.72 | 1.42 | 2.16 |
| 20 | -0.14 | -1.17 | 0.65 | 1.98 |
| ETF | Theme | Today | 5d Ago | 20d Ago | 63d Ago |
|---|---|---|---|---|---|
| IGV | software | +1.52% | +2.03% | +10.66% | +14.48% |
| SMH | semiconductors | +1.46% | -1.81% | +17.85% | +36.83% |
| XLE | energy | +0.55% | +1.83% | +3.77% | +7.74% |
| TLT | long-term bonds | +0.41% | -0.82% | -2.69% | -5.80% |
| FXI | china | -1.13% | -3.63% | -1.64% | -7.52% |
| KWEB | china | -2.66% | -5.38% | -2.81% | -15.50% |
The US consumer offers contradictory signals at the micro and macro levels. Ross Stores (ROST) rose +7.94% to record highs after reporting a 17% increase in Q1 comparable store sales and raising full-year guidance, according to Barron's. The retailer's operating margin expanded 120 bps, driven by higher transaction volume across demographic cohorts.
Fed Waller Speech: Fed Governor Waller delivered a hawkish address, advocating for the removal of any "easing bias" from FOMC language, according to federalreserve.gov, and arguing a rate hike is as likely as a cut due to energy-driven inflation risks. The 2-Year Treasury yield advanced 3.6 bps to 4.12%, according to CNBC, flattening the 2Y/10Y spread as the 10-Year yield slipped 2.6 bps to 4.56%, according to CNBC.
Michigan Consumer Survey (Final): The final May sentiment index fell to a record low of 44.8, a significant downward revision from preliminary estimates, according to umich.edu. Consumers cited energy-driven inflation and the Iran conflict as eroding their personal finances.
New York Fed Staff Nowcast: The NY Fed relaunched its real-time GDP growth tracker, according to bea.gov, updating methodology to model elevated economic volatility in current labor and manufacturing markets, according to newyorkfed.org.
Data compiled by FactorPulse AI; edited and verified by Jeff Klein. For informational purposes only. Does not constitute financial advice, an investment recommendation, or an offer to buy or sell any securities. Always consult a qualified financial professional before making investment decisions.
For more on factor construction methodology, see www.factorpulse.com/glossary.