Hormuz reopening and falling yields split the tape cleanly against energy.
When geopolitical risk unwinds faster than the market priced it, the exit from energy is not orderly — and falling yields simultaneously rewarded the defensive and rate-sensitive corners of the market that had been penalized for weeks.
A faster-than-expected Strait of Hormuz reopening — 72 ships carrying 19 million barrels transiting in 24 hours — collapsed the geopolitical risk premium in energy, driving Energy down -2.04% and sending CQP and VG to session lows as Reuters simultaneously flagged near-term oversupply.
Since the last briefing
Yesterday the committee framed a sector-wide AI ROI reckoning centered on MU's Q3 print as the highest-conviction quality expression within a semiconductor sell-off, and flagged LRCX as the most acute re-rating risk.
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.