New Delhi, July 29 -- The U.S. equity market has spent most of 2025 climbing steadily higher. The S&P 500 crossed the 6,300 mark in July. tech-heavy indices like the Nasdaq continue to deliver gains, bolstered by AI optimism and strong corporate earnings.

But beneath the surface, momentum is thinning. The breadth of the rally, measured by how many stocks are participating, is narrowing. Defensive sectors are beginning to attract capital. And options pricing suggests that traders are starting to hedge, not chase.

Volatility, while still contained, is starting to show up again in daily moves. The VIX, long dormant below 14, has crept higher. And with a fresh round of tariff risk hanging over August markets, institutional positioning is sh...