Amid 'Exhausting Confusing' Iran Headlines, Goldman Partner Highlights The Rates Level Where Equities Will Struggle

Amid 'Exhausting / Confusing' Iran Headlines, Goldman Partner Highlights The Rates Level Where Equities Will Struggle

BY TYLER DURDEN MONDAY, JUL 27, 2026 - 07:25 PM With fundamental L/S HFs down 4.5% in July (their 2nd worst monthly performance since 2023), yet still up 13% YTD, Goldman Sachs top trader, John Flood, notes that the desk is seeing a lot of questions pouring in on what we are seeing during today’s market reversal driven by leg lower in momentum (again)…

The Goldman Partner simplifies what's driving the market today below: A live FOMC meeting on Wednesday (35% probability of hike) + META & MSFT reporting later that afternoon + AAPL & AMZN then reporting on Thursday is creating a lack of willingness to play any offense.

HFs are sporadically cutting single stock risk (again) while L/Os are sitting on their hands. Worth noting that this (WSJ reporting NVDA is in talks to provide a $250B financial guarantee for an OpenAI data center project being planned in Ohio (and might provide financing for OpenAI to purchase chips for the facility, which could total an additional $350B) didn’t sit well with traders as several are arguing when we look back it will mark the peak in the circular AI financing mania: The problem with the $2 trillion in circular AI financing is that it is all contingent on the frontiers (Anthropic/ OpenAI) being money good on their $1.5+TN in unfunded commitments. Which they won't be if Chinese open LLMs grab market share​ ​ Hence the push against Chinese LLMs — zerohedge (@zerohedge) July 23, 2026 AI capex has been the gas on fire for markets but investors are starting to push back (credit remains focal point here).