Flows are rotating into ESI while DD weakens

🇺🇸 Flow has shifted sharply toward equities, with inflows outpacing outflows by a notable margin at midday. The market’s dominant theme is inflow into $ESI (Element Solutions Inc.), which drew +$74M, while DD led the outflows with -$52M. The broad sell of DD underscores a rotation away from the theme, even as the market overall remains constructive for now. This divergence signals a cautious tone - investors are reallocating from defensive or cyclical themes into growth-oriented names. Next, watch whether ESI can sustain its inflow momentum and confirm broader participation, or if the DD exit accelerates and broadens into a more sustained shift. The current flow pattern favors a risk-on tilt, but the cautious outflows from DD suggest a potential pause or reversal ahead.