Tech Leads a Record Tape, But the Hedging Cushion Is Thin

Tech and communication services are carrying the S&P 500 to record highs, but the internals underneath that leadership tell a more layered story than the index level suggests. The S&P 500 hit an intraday all-time high of 7,816.70 and closed at a record on Thursday, August 13, its third straight weekly gain, and SPY and QQQ are both extending those gains into Friday's session, up 0.70% and 1.16% respectively. Strip away the headline number and what is actually driving it is a narrow, earnings-backed rotation into growth, cushioned by options positioning that leaves the market with less room for error than the calm VIX print implies. Key Takeaways The S&P 500 hit a record intraday high of 7,81…