Flows are rotating into AIR while Cross-Sector Financial Cohort weakens

🇺🇸 A clear flow reversal is emerging, with inflows outpacing outflows and signaling a tilt toward risk appetite. At 10:55 AM ET, inflows reached 115, compared to 86 outflows, with $AIR (AAR Corp.) leading with a robust +$64M. Meanwhile, the dominant outflow from the Cross-Sector Financial Cohort, led by UDR, remains sizable at −$27M, underscoring caution in certain defensive areas. This shift suggests traders are increasingly favoring growth and innovation themes, with GVA and CRWV also seeing strong inflows. The key next step is whether this inflow momentum sustains or if the financial sector's outflows deepen, which could limit the overall risk-on tone. Watch for a confirmation in continued inflows into growth themes and whether financial outflows slow or accelerate.