An oil shock lifted yields and energy, and defensives fell alongside bonds.
When energy and yields rise together, the defensive shelter that worked last week can fall at the same time as growth, so the protection that matters is pricing power and cash flow rather than labels.
Energy led a narrow tape, with 5 of 12 sectors higher: Energy rose 2.30% and extended a confirmed 5-session gain of 4.24%, while Consumer Staples fell 1.51% and Healthcare fell 0.95%.
Since the last briefing
Yesterday's briefing said investors were buying bonds and defensives, and the committee advised holding durable cash generators and not chasing energy or defense.
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.