Sticky inflation kills rate-cut optionality and reprices duration across every sector.
With core PCE at a three-year high and the 10-year yield at 4.45%, the cost of carrying a growth premium just rose again, and the market is sorting names accordingly.
Core PCE at a three-year high of 3.3% buried rate-cut expectations for 2026, splitting the tape cleanly along duration lines: Technology gained 1.46% on the session while Utilities and Consumer Staples each fell 0.97%, producing a 2.43-point top-to-bottom sector dispersion.
Since the last briefing
Yesterday the committee favored AI-infrastructure compounders and treaty-driven defense exposure while reducing energy and cybersecurity multiple risk, premised on simultaneous geopolitical de-escalation and consumer stress.
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.