Daily Wrap – Both HY and IG Credit Risks Emerge

The day was relatively quiet, in line with yesterday’s 1-day overbought internals. Renewed AI concerns drove rotation, reversing yesterday’s Momentum (-0.35%) rally, with Value (+0.7%) stocks stepping up to take the lead. Another source of concern was the state of the labor market after ADP’s weekly jobs report. CoreWeave (CRWV -16.3%) dampened sentiment around the AI…