Bonds and defensives rallied as investors sold AI infrastructure and punished Financials
Holders of AI-infrastructure and capital-markets names are being asked to prove their cash flows can last, while cash-generative defensives are getting the benefit of the doubt.
Seven of 12 sectors rose, but dispersion ran to 5.55 points: Communication Services gained 3.36% while Financials fell 2.19% and Technology fell 1.21%, both confirmed over five sessions.
Since the last briefing
Yesterday we said Nvidia's margin scare pulled Technology lower while bonds rallied and defensive sectors held up. We held durable franchises, declined to add to NVDA, and kept SANM and PSIX on the research list.
What drove the session and how it transmitted, the exposure table by persistence grade, where the committee disagreed, its verdict and weighting, and the falsifiers that would prove it wrong.