📊 Are miners leading the rotation?

Good Morning Investors,

Macro drivers dominated the session. Treasury yields slid, with the U.S. 10 year dipping below 4 percent, keeping rate expectations and Fed policy divergence in focus. While lower yields would normally support valuations, uncertainty over the scale and timing of rate cuts is limiting that tailwind.

Resource linked names provided a rare bright spot. The mining complex strengthened as rare earth and commodity plays benefited from renewed trade tensions and supply concerns related to export restrictions. Within U.S. markets, semiconductors showed relative resilience, with select chip makers gaining on continued AI driven investment themes.

The market remains defined by narrowing leadership and elevated dispersion, a setup that favors active selection over broad exposure. With volatility and macro uncertainty likely to persist, opportunities within small caps are increasingly concentrated in sector specific stories rather than index level trends.

Matthias Schneider
Editor at Analytica Investor