Wednesday, October 7, 2026

QNTM Day Wrap — October 7, 2026

The QNTM model portfolio slipped 0.38% today, modestly underperforming SPY's 0.23% decline — a 15 bps gap driven by the model's 50-name concentration versus a broad-market benchmark.

What drove it: This was a broad risk-off tilt rather than a single blowup. U.S. equities fell as pressure continued to build in the bond market, pushing Treasury yields to levels not seen in more than two decades , with the 10-year yield back around 5.31% and the 30-year near 5.68% — a 52-week high. Growth-sensitive sectors bore the brunt: memory names MU and SKHY kept selling off on a Toshiba supply headline that part of the market already thinks is overdone , and healthcare lagged, with the Health Care Select Sector SPDR (XLV) fell 0.2% as utilities and real estate held up better. A model skewed toward higher-momentum, higher-growth names in a 50-stock book would naturally feel more drag from the yield-driven rotation than SPY's wider sector spread.

Market recap: The Dow dropped 0.6%, and the S&P 500 declined 0.2%, with the Nasdaq Composite falling 0.2% , both retreating from Tuesday's record closes. Brent crude hit $102 amid a pickup in Iranian attacks on vessels in the Strait of Hormuz , lifting WTI near $89. Traders awaited the September FOMC minutes for rate-path clues.

What's next: With conviction at 47.6 across 1,418 names and only 2% flagged high-conviction, the model stays in a neutral regime — watch for the Fed minutes' tone and whether yields stabilize.

Educational commentary only — not investment advice.