📊 AI Slips, Oil and Miners Rally

Good Morning Investors,

Cracks are emerging in the AI and large cap tech narrative. Reports suggesting that markets may be turning against excessive AI spending have tempered enthusiasm for high multiple growth stocks. This shift has improved relative positioning for domestic and commodity exposed companies, which appear better insulated from sentiment driven swings in tech valuations.

Macro conditions remain the key wildcard. Shutdown related GDP warnings and increasingly cautious corporate commentary have raised the probability of slower Q4 growth. While today’s action hints at constructive breadth, volatility remains elevated, and traders continue to favor sectors tied to tangible cash flow and real assets rather than speculative growth stories.

Matthias Schneider
Editor at Analytica Investor