The Mideast escalation sold almost every sector, and short-dated Treasuries fell with stocks
Holders of diversified portfolios got little help from defensives or bonds today, so dispersion inside sectors mattered more than which sectors they owned.
Only 1 of 12 sectors rose as the Mideast conflict widened. Materials fell -4.43% and Industrials -2.37%, while Communication Services edged up 0.18%. The spread from top to bottom sector was 4.61 points.
Since the last briefing
Yesterday the committee leaned 55/45 toward treating the move as a real energy-and-rates shock, and it dropped the idea that bonds would act as shelter.
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.