Investors again bought bonds and defensives while selling AI cloud names and Financials
The session rewarded balance sheets and steady cash flow over leverage and financing-dependent growth. A Middle East conflict now adds an energy risk that bond yields have not yet priced as inflation.
Seven of 12 sectors rose, but the gap between best and worst was 5.55 points: Communication Services gained 3.36% while Financials fell 2.19% and Technology 1.21%. CoreWeave fell 18.51% and Nebius 13.05%, while Dell rose 21.93%.
Since the last briefing
Yesterday we said bonds and defensives rallied as investors sold AI infrastructure and punished Financials, and we chose to hold durable franchises and not add to NVDA.
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.