What is quant finance? Factor-based machine learning models are signaling significant momentum build in AI-related semiconductor stocks, evidenced by SOXX ETF adding 9% month-to-date. This strategy was upended by a sharp decline in small cap stocks, prompting quant products with heavy exposure to trim holdings. The massive selloff triggered losses in derivatives known as “snowballs,” causing a “quant quake” panic and forcing brokerages to dump index futures as well. Cisco WebexOne 2025: Why Human Involvement Is Critical to AI Success What is quant finance? In eurozone equities, quants model ECB policy scenarios—current bets on a June rate cut have lifted the STOXX 50 by 2.7% over the past month, aligning with predictive econometric outputs.