Commodity-based equity futures traders have adopted weather pattern recognition in their algorithms. Futures algorithms detected a 72% probability of above-average summer temperatures, leading to increased positioning in utilities and natural gas-linked sectors. "PathFinder worked so well, in fact, that when it failed, people rarely questioned the algorithm. Instead of venturing inside to see what was going on, they tweaked its parameters, modified circuits, or switched to larger FPGAs," added Stefan Nikolić, an EPFL alumnus and now a professor at the University of Novi Sad. E-mini Nasdaq futures saw significant algo-led buy pressure following an AI sector earnings beat. Futures algorithms have been incorporating sentiment analysis from earnings call transcripts, calculating sentiment scores that outperform baseline analyst forecasts. Real-time retail flow data is beginning to influence micro-futures algorithms. Retail buy pressure in meme stocks has had a spillover effect on small-cap index futures, altering short-term volatility curves.
