Weekly Macro Trends Report
SEQH Capital Partners Research Team
Research Desk
Saturday, December 13, 2025
The “Plumbing” Pivot & The Tech Rotation
Executive Summary
This week marked a definitive regime shift in both monetary mechanics and market leadership. While the headline story was the Federal Reserve’s third rate cut of 2025, the real signal lies in the plumbing: the Fed has officially ended Quantitative Tightening (QT) and launched a $40 billion/month T-bill purchase program to maintain “ample reserves”. Effectively, the central bank has moved from draining liquidity to injecting it, a “stealth QE” pivot aimed at stabilizing the repo market rather than stimulating the economy.
Simultaneously, we are witnessing a violent rotation out of the crowded AI trade. Broadcom’s (AVGO) 11% crash on Friday, despite a beat-and-raise quarter, signals that the “priced for perfection” AI narrative is fracturing. Capital is aggressively rotating into Small Caps (Russell 2000 hit record highs Thursday) and Real Assets (Gold at ~$4,300/oz).
We are flying blind on inflation data with the November CPI release delayed until Dec 18, but the market’s behavior suggests it is prioritizing liquidity mechanics over immediate inflation reads.
Macro Dashboard: Week Ending Dec 12, 2025
