Hormuz shock rotates capital into defensives as earnings split the tape.
A supply disruption measured in quarters, not weeks, is repricing the cost of holding energy and tech simultaneously — and the session's sector dispersion shows the market has not yet decided which wins.
A Strait of Hormuz disruption — Dow's CEO citing an 'almost a year' clearing timeline — dominated discussion, pushing Utilities, Consumer Staples, Real Estate, and Energy higher while Technology fell, leaving only five of twelve sectors in the green on a 4.03-point top-to-bottom spread.
Since the last briefing
Yesterday's position was constructive on the AI-infrastructure complex anchored by GEV, ARM, MU, and NVDA, with a 60/40 net-bearish lean on IBM and an active-monitoring flag on duration-sensitive compounders MPWR and EVRG.
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.