In the latest Macro Mornings report, strategist Alessandro Fasanella highlights 11 market records that he believes reflect underlying strength rather than the warning signs typically seen before a major downturn.

According to the report, today’s market is being supported by more than just enthusiasm around artificial intelligence. Strong corporate earnings, resilient economic activity, and improving market participation are all helping sustain the advance.

Among the bullish signals highlighted are:

• Major US stock indexes continue to trade at record highs.
• Market breadth is improving, meaning a wider range of stocks is participating in the rally.
• Corporate earnings remain resilient, providing fundamental support for higher share prices.
• Credit markets remain stable, suggesting investors are not yet pricing in significant financial stress.
• Liquidity conditions continue to support risk assets, even as interest rates remain elevated.

The report argues that record highs on their own should not be viewed as a reason to become bearish. Historically, new highs often occur during the strongest phases of a bull market, especially when they are backed by improving fundamentals rather than speculative buying alone.

That said, Fasanella notes that investors should continue watching inflation, interest rates, and geopolitical developments, as any unexpected deterioration in those areas could change the market outlook.

For investors, the report offers a reminder that strong markets can stay strong longer than many expect. While short-term pullbacks are always possible, the broader mix of earnings growth, healthy credit markets, and improving participation suggests the current bull market remains well supported.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post [11 RECORDS] They all look bullish… until you read them in ORDER first appeared on Finblog.

The bigger question now is not whether stocks have recovered. It is where investors can still find value after the rebound.

Technology Still Leads, but Valuation Gaps Remain

Technology continues to dominate market performance as AI infrastructure spending supports chips, cloud companies, and data-center demand. The AI theme remains one of the strongest forces behind the market, helping push major indexes higher and supporting earnings expectations.

But leadership remains concentrated. Analysts are increasingly watching whether gains spread into other areas instead of staying focused on a small group of AI winners.

Value Is Appearing Outside the Biggest Names

Attention is gradually shifting toward areas that lagged earlier in the rally. Markets are seeing interest in:

• Undervalued dividend companies
• Value stocks left behind by AI momentum
• Businesses with stable cash flows
• Select industrial and financial names

The idea is simple: AI may still drive the market, but not every opportunity sits inside the AI trade.

Risks Have Not Disappeared

The rally also comes with growing questions. Investors are watching:

• Inflation pressure
• Oil prices
• Bond yields
• AI spending sustainability

Higher valuations mean markets could become more sensitive to disappointments, especially if inflation stays elevated or earnings growth slows. Rising yields are already becoming a risk investors are watching more closely.

April showed that markets still believe in: AI + earnings + infrastructure growth

But the next phase may look different. Leadership could broaden beyond mega-cap technology as investors search for value in areas that have not fully participated in the rally.

Markets remain optimistic. The focus is simply shifting from:

“What went up?”

to:

“What still looks attractive?”

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: ETFs vs Mutual Funds: What Investors Need to Know in 2026

The post US Stock Market Outlook: Where to Find Value After April’s Rally first appeared on Finblog.

The Securities and Exchange Commission is facing new bipartisan pressure to review how Chinese firms list and raise money in the US.

Rare Bipartisan Move

A group of senators, led by Tim Scott and Elizabeth Warren, sent a joint letter to SEC Chair Paul Atkins calling for stricter oversight.

Lawmakers warned that Chinese-linked companies could pose:

• National security risks
• Threats to investor protection
• Concerns around market integrity

The letter was backed by both Republicans and Democrats, highlighting growing consensus in Washington.

Focus on “Opaque” Structures

At the center of the concern are variable interest entities (VIEs), structures that allow Chinese firms to list in the US despite restrictions on foreign ownership.

Lawmakers argue these structures: Lack transparency, May bypass regulatory safeguards, could support Chinese government objectives

They urged the SEC to examine whether these listings undermine fair and orderly markets.

Rising Concerns Over Capital Flows

Officials are increasingly worried that US investor money may be:

• Flowing into Chinese firms
• Supporting sectors tied to military or strategic development

Critics also say some companies do not meet the same disclosure and governance standards required of US firms.

SEC Already Increasing Scrutiny

The SEC has already taken steps in recent years to tighten oversight of Chinese listings, including:

• Expanding disclosure requirements
• Working with regulators in China on audit access
• Launching efforts to crack down on cross-border fraud

The agency has also halted trading in several Chinese companies suspected of irregular activity.

The push signals a broader shift in US policy toward China, where financial markets are becoming part of the geopolitical battleground.

If the SEC moves forward, it could reshape how Chinese companies access US capital and limit billions in cross-border investment flows.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post SEC urged to restrict Chinese companies’ access to US capital markets first appeared on Finblog.

The first months of 2026 are showing why diversification matters. Just a year ago, the stock market rally was heavily driven by a small group of technology giants linked to artificial intelligence. Those companies pushed the market to record highs and created one of the most concentrated markets in modern history.

By the end of 2025, the US stock market’s top 10 companies accounted for the largest share of the market since 1932. But the situation is changing quickly this year as investors rethink the risks of the AI boom.

Investors Are Moving Away From AI Stocks

Concerns are growing about the massive spending required to build AI infrastructure and whether those investments will eventually generate strong profits.

This shift has led to what analysts call the “anything but AI” trade, where investors move money into sectors less dependent on artificial intelligence.

Many of the biggest technology stocks that led the market in 2025 are now struggling in 2026.

Examples include:

• Microsoft down about 18.6% this year
• Tesla down roughly 10.5%
• Amazon down about 9%
• Nvidia down nearly 5%
• Broadcom down about 7.7%

Some companies are holding up better. Walmart, for example, has gained nearly 15% this year as investors shift toward more defensive sectors.

High-Quality Bonds Are Beating Stocks

One of the biggest winners so far in 2026 is high quality US bonds.

Bonds traditionally provide stability during periods of market uncertainty, and this year they are slightly outperforming US equities.

While bonds usually generate lower long term returns than stocks, even a small allocation can reduce portfolio volatility when markets become unstable.

International Stocks Are Outperforming the US

Another strong performer in 2026 has been international equities.

Global stocks outside the US already began outperforming American markets in 2025 after many years of lagging. That trend has continued this year.

Several factors explain the shift:

• Many international markets are less dominated by technology companies
• Global markets are less exposed to the AI spending boom
• Valuations outside the US remain relatively cheaper

Because of this, international stocks are benefiting from the current rotation away from technology.

Value Stocks Are Making a Comeback

Value stocks are also gaining momentum in 2026.

Value investing focuses on companies that appear undervalued relative to their fundamentals, often in sectors such as:

• Industrials
• Energy
• Financials
• Consumer goods

These sectors have performed well this year, helping value indexes outperform the broader market.

Importantly, value portfolios tend to have less exposure to large technology companies, which has helped them during the recent tech selloff.

Small-Cap Stocks Are Rebounding

Small-cap companies are another bright spot in 2026.

These smaller firms began recovering late in 2025 and have continued to rise this year. After underperforming large companies for years, small-cap stocks are still considered undervalued by many analysts.

Because they are less tied to the AI boom and mega-cap technology companies, they are benefiting from the market rotation.

Dividend Stocks Are Back in Favor

Dividend paying stocks are also outperforming many growth companies.

These firms tend to come from older sectors of the economy such as:

• Utilities
• Healthcare
• Financial services
• Consumer goods
• Industrial companies

Dividend stocks provide steady income and are often seen as safer investments during uncertain market periods.

As investors look for alternatives to high-growth technology stocks, dividend paying companies are attracting renewed interest.

Is the Market Rotation Permanent?

It is still too early to know whether the shift away from AI stocks will continue throughout the year.

Technology companies remain some of the most innovative and profitable businesses in the world, and strong earnings could quickly trigger another rally.

However, the early months of 2026 demonstrate an important lesson for investors: relying on a single theme, even one as powerful as artificial intelligence, can create significant risk.

Diversification across sectors, asset classes, and regions can help investors manage volatility and benefit from changing market trends.

As Morningstar analysts note, the future of markets is always uncertain. The best strategy is often to build portfolios that can survive different economic scenarios rather than relying on a single winning trend.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Which Diversification Strategies Are Winning in 2026? first appeared on Finblog.

According to data from Barclays, volatility in single stocks is now about seven times higher than the broader market, the widest gap in at least three decades. That divergence suggests investors are aggressively repositioning portfolios as they try to determine which industries will benefit from artificial intelligence and which could be disrupted by it.

“This is a stock picker’s market, but not in a conventional sense,” said Michael O’Rourke of JonesTrading. “Stock picking is about avoiding implosions.”

What’s Driving the Hidden Volatility

Analysts point to three main forces shaping today’s unusual market conditions:

1. AI uncertainty: Rapid advances in AI, once a purely bullish story, are now creating doubt. Investors are uncertain about which companies will succeed and which will fail, leading to sector-by-sector rotations.

2. High valuations and interest rates: Strategists at JPMorgan say elevated valuations combined with still-high borrowing costs are making markets fragile. When prices are stretched, even small surprises can trigger sharp moves.

3. Concentration risk: Many portfolios remain heavily weighted toward a handful of mega-cap tech names. When sentiment shifts, those positions can unwind quickly and cause dramatic single-stock swings.

Warning Signs Investors Are Pulling Back

Several indicators suggest investors are becoming more cautious:

• Hedge funds have been net sellers of US equities at the fastest pace since March, according to Goldman Sachs.
• Clients at Bank of America sold $8.3 billion in individual stocks last week, one of the largest outflows since 2008.
• Active managers cut equity exposure to the lowest level since July, a survey from the National Association of Active Investment Managers showed.

These moves indicate professionals are reducing risk even while headline indexes remain stable.

Why This Matters for Markets

Historically, similar patterns of calm indexes paired with extreme internal volatility have appeared before major market shifts. Barclays analysts note that comparable setups preceded events such as the 2008 financial crisis and last year’s tariff-driven market disruptions.

Strategists warn that when uncertainty rises, correlations between stocks can suddenly jump. That means shares that once moved independently may fall together if a major shock hits.

Possible triggers investors are watching include:

• geopolitical escalation involving Iran
• upcoming earnings from chip giant Nvidia
• unexpected economic data surprises

Not All Signals Are Negative

Despite the hidden turbulence, there are also signs of strength. A higher-than-usual share of S&P 500 companies reported profit growth this earnings season, the strongest showing in four years. Analysts at State Street say broader participation across sectors suggests systemic risk remains limited for now.

In other words, the market may not be weak. It may simply be adjusting.

The current market is unusual. Indexes look calm, but individual stocks are moving wildly. Experts say this environment rewards diversification and careful stock selection rather than broad bets on the market as a whole.

As one portfolio manager put it, investors are now trying to figure out whether AI will be a blessing or a threat. Until that question becomes clearer, volatility beneath the surface may remain the market’s defining feature.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post Listless US stock market masks record volatility beneath surface first appeared on Finblog.

Fund managers who reduced exposure to large technology stocks are outperforming at the strongest rate since 2007, according to data from Goldman Sachs. Nearly 60% of large-cap mutual funds are beating their benchmarks this year, helped by weak returns from megacap tech names.

Market Rotation Is Changing the Rules

The S&P 500 has been mostly flat early this year, but beneath the surface leadership has shifted dramatically:

• Tech sector down more than 4%
• Energy and materials up 15%+
• Consumer staples up about 13%
• Financials and discretionary stocks lagging

This widening gap between winners and losers, known as dispersion, has climbed to the 93rd percentile since 1980, creating ideal conditions for active managers to outperform.

Breadth Is Expanding

Roughly 66% of S&P stocks trade above their 100-day average, and the equal-weight S&P index recently hit a record. That signals gains are spreading beyond the handful of megacap companies that drove markets for years.

Historically, broader participation has been one of the strongest drivers of active fund success.

Why Tech Is Losing Momentum

Several forces are weighing on tech leadership:

• Concerns that AI could disrupt software and professional services
• Valuation worries after years of outsized gains
• Investors rotating into cheaper cyclical sectors
• Rising uncertainty over interest-rate policy from the Federal Reserve

The tech-heavy Nasdaq Composite is down about 1.5% this year, while value sectors have rallied.

Strategists at JPMorgan say the shift is actually healthy because it reflects a broadening recovery rather than dependence on a small group of stocks.

Investors Are Repositioning

Data tracked by Bank of America shows clients have poured money into consumer staples at the fastest pace since 2008 while selling tech in most recent weeks.

Active funds are now most overweight industrials and financials and most underweight information technology. Cash levels have dropped to record lows near 1.1%, signaling investors remain risk-on but selective.

The market is not abandoning tech entirely, but leadership is shifting. For the first time in years, diversification away from megacap technology stocks is not just defensive. It is outperforming.

Related: From ‘Buy America’ to ‘Bye America’: Is Wall Street Losing Its Global Edge?

What to make of this very weird market

The post Avoiding Tech Stocks Is Paying Off in 2026 first appeared on Finblog.

US investors have withdrawn about $75 billion from domestic equity funds in the past six months, including $52 billion since the start of 2026, the biggest early-year outflow in at least a decade, according to LSEG/Lipper data. The shift signals that the long-dominant “buy America” trade may be losing momentum.

Why Investors Are Moving Money Abroad

For years, US stocks led global markets thanks to strong growth, rising corporate earnings, and tech dominance. The rally accelerated during the AI boom, which pushed the S&P 500 to record highs.

Now, several factors are changing the mood:

• Big Tech gains are fading, making investors more selective.
• Valuations are much higher in the US than overseas markets.
• Concerns about AI costs and risks are rising.
• A weaker dollar has shifted global return dynamics.

Investors are increasingly rotating toward emerging markets, Europe, and Japan, where stocks are cheaper and growth prospects look stronger.

The Performance Gap Is Hard to Ignore

Over the past year, global markets have outperformed US stocks in dollar terms:

• Japan’s Nikkei 225 up about 43%
• Europe’s STOXX Europe 600 up about 26%
• China’s CSI 300 up about 23%
• South Korea’s KOSPI roughly doubled

By comparison, the S&P 500 gained about 14%.

Valuations also favor foreign markets. The S&P trades near 21.8× forward earnings, versus about 15× in Europe, 17× in Japan, and 13.5× in China.

Rotation Away From Tech

Strategists say investors are shifting from high-growth tech names into value and cyclical sectors such as banks and industrial companies, many of which are heavily represented in overseas markets.

European banking stocks, for example, surged 67% last year and are already up another 4% in 2026.

A Global Shift Underway

Fund-manager surveys from Bank of America show investors moving from US equities into emerging markets at the fastest pace in five years. Data also indicates US money flowing into European equity funds has accelerated since mid-2025.

Some strategists believe this could mark the start of a long-term global rotation rather than a short-term trade.

Wall Street is not collapsing, but it is losing its monopoly on investor attention. After more than a decade of dominance, US stocks are facing real competition from overseas markets, and investors are beginning to follow the returns

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post From ‘Buy America’ to ‘Bye America’: Is Wall Street Losing Its Global Edge? first appeared on Finblog.

But 2026 has opened with a very different tone.

The S&P 500 is up just 1.4% year to date, and at times has even slipped into negative territory. Meanwhile, global markets are surging. The MSCI ACWI ex U.S. Index is up nearly 8–9%, marking the worst relative start for US stocks versus global markets since 1995, according to Goldman Sachs.

So what’s going on? Is this the end of American exceptionalism, or just a rotation?

The Numbers Tell a Clear Story

Let’s look at performance snapshots:

• S&P 500: roughly flat to slightly negative early in 2026
• MSCI EAFE: up ~8%
• MSCI ACWI ex-US: up ~8.5%
• South Korea’s KOSPI: up an eye-catching 24% year to date
• Japan’s Nikkei 225: up 2.3% in recent trading
• UK FTSE 100: modest gains
• Emerging Markets: Goldman now sees 12–14% USD returns for 2026

Even Bitcoin is hovering around $66–67K, while the US Dollar Index (DXY) has weakened about 1% year to date and nearly 9–10% over the past year.

When global investors compare 1% growth in US stocks to markets rising 8–24%, the temptation to rotate capital becomes obvious.

Is This a “Sell America” Trade?

Not quite.

Foreign investors actually poured $1.6 trillion into US assets last year, a record, according to Rockefeller International’s Ruchir Sharma. That hardly signals abandonment.

The issue is more subtle.

With the dollar down nearly 10% year over year, foreign investors face a currency haircut when converting US gains back into local currencies. A 10% currency loss can wipe out equity returns.

So this is less “Sell America” and more: “Use marginal future dollars outside America.”

Investors are hedging currency risk while chasing stronger momentum in Europe and Asia.

Why Are Global Markets Suddenly Winning?

1. Valuations

US stocks are expensive.

Strategists note that US price-to-earnings ratios are roughly 40% higher than international markets. Even excluding the Magnificent Seven, the US trades above 20x earnings.

That premium made sense when US growth clearly outpaced the world. Now that global growth is stabilizing, the gap looks harder to justify.

2. Concentration Risk

The top 10 US companies account for about 40% of the S&P 500.

That means if expectations around AI or tech spending slip, the entire market feels it. In contrast, many international markets entered 2025 with lower valuations and broader sector exposure.

3. Macro and Political Uncertainty

US-specific geopolitical risk has increased. Tariff discussions, trade tensions, pressure on institutions, and unpredictable policy shifts create uncertainty.

Meanwhile, fragmenting global trade patterns may actually benefit parts of Europe and Asia as countries localize supply chains and reduce reliance on US imports.

In other words, volatility at home can create growth abroad.

Is American Exceptionalism Over?

Analyst Ed Yardeni posed the provocative question:
Is American exceptionalism “kaput”?

His answer: No.

The US remains a global innovation engine. Foreign capital is not fleeing. The technology leadership remains real.

But here is the nuance: There are now exceptional companies outside the US attracting capital at cheaper valuations.

For the first time in decades, global investors are meaningfully diversifying away from extreme US concentration.

What This Means for Investors

This may not be a dramatic collapse. It may be something more important.

After a decade where “buy US, ignore the rest” worked consistently, 2026 is testing that assumption. The world is in a global bull market. Capital is flowing. The difference is where it is flowing.

The key question is no longer: “Should I sell America?”

It is: “How much global exposure should I add while the rotation is happening?”

And if history since 1995 is any guide, these early-year shifts can shape performance trends for much longer than investors expect.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post US Stocks are losing the global race. Should Investors Be Worried? first appeared on Finblog.

The S&P 500 came close to a tariff-driven bear market in April, only to stage a powerful rebound that carried the index to new records by summer. Behind the headline gains, however, investors faced extreme swings, rising concentration risks, and growing unease about valuations.

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Here is how the year unfolded, and why it mattered.

From Tariff Panic to AI Fueled Recovery

Markets entered 2025 on solid footing, but sentiment flipped sharply in April when sweeping US tariff plans triggered fears of a trade driven slowdown. The S&P 500 fell nearly 15 percent at its lows, and volatility surged.

The Cboe Volatility Index jumped above 50, a level seen only during the pandemic and the global financial crisis. That fear faded just as quickly after tariff delays were announced, sending volatility back below 20 by May.

By mid year, enthusiasm around artificial intelligence spending helped lift corporate profit expectations and reignite risk appetite. The S&P 500 is now up roughly 16 percent for the year, marking its third consecutive year of double digit gains.

“It was Trump 1.0 on steroids,” said Keith Lerner of Truist Advisory Services, pointing to the unusual influence of political decisions on market swings.

ETF Flows Reveal the Turning Point

Investor behavior clearly split the year into two phases. April saw sharp equity ETF outflows, particularly from cyclical sectors, as investors reduced risk exposure.

The Nasdaq 100 tracking Invesco QQQ ETF recorded its first net outflow in seven months during that period. Once tariff pressure eased, those flows reversed quickly, with inflows accelerating again in May as tech stocks rebounded.

Strategists noted that the pace and intensity of flows reflected how sensitive markets had become to policy signals.

Wall Street Forecasts Were Whiplashed

2025 proved especially humbling for market forecasters. Nearly every major bank cut S&P 500 targets following the tariff shock, only to raise them again weeks later as conditions improved.

Unlike past corrections, where recoveries typically took four months, the market bounced back in roughly half that time.

“The speed of the recovery was extraordinary,” said Sam Stovall of CFRA, comparing the forecasting chaos to early 2020.

Bubble Anxiety Returns

Valuations became another major source of tension. Early in the year, veteran investor Howard Marks warned that markets were entering bubble territory. Those concerns intensified after the release of China’s DeepSeek AI model reignited fears of overinvestment and competition.

Some research firms flagged semiconductor stocks as meeting the formal criteria for a bubble. Others pushed back, arguing earnings growth expectations through 2027 still justify current prices.

The result was a market caught between conviction and caution.

Concentration Risk Reaches Extremes

One of the clearest structural shifts in 2025 was market concentration. The top 10 stocks now represent nearly 40 percent of the S&P 500, driven largely by the so called Magnificent Seven.

Critics warn that this level of concentration leaves the index vulnerable to sharp reversals if leadership falters.

“The S&P is doing a poor job of diversification right now,” said Macro Risk Advisors founder Dean Curnutt.

That concentration also made life difficult for active managers. Only 22 percent of actively managed large cap funds beat the index this year, the lowest share since 2016.

Global Markets Quietly Outperformed

Despite the S&P 500’s recovery, US stocks lagged international peers. Markets in Europe, Japan, and parts of Asia outperformed, helped by currency moves and less policy uncertainty.

Strategists described the underperformance as a self inflicted outcome tied to US trade and political risk, combined with years of prior US dominance finally unwinding.

What 2025 Leaves Behind

The lesson of 2025 is not just about returns, but about fragility.
Markets proved resilient, yet deeply sensitive to policy shocks, narrow leadership, and shifting narratives around AI.

As investors head into 2026, expectations remain optimistic. But the extremes of 2025 have left behind a market that looks stronger on the surface than it may be underneath.

Volatility, concentration, and valuation debates are unlikely to fade anytime soon.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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‘It’s a great day’ – Trump signs bill to end longest shutdown in US history

The S&P 500 slid 1.6%, the Nasdaq dropped 2.5%, and the Dow fell 650 points, breaking a four-day winning streak. The sell-off accelerated into the afternoon as heavyweight AI names, Nvidia, Tesla, Broadcom, and Alphabet, sank on valuation worries and rising uncertainty around monetary policy.

Shutdown Ends — But Key Data May Be Lost Forever

President Trump officially signed the funding bill Wednesday night, ending the 43-day shutdown, the longest in US history. But the reopening revealed a new problem: critical October economic reports may never be released.

• No unemployment rate for October, the first data cancellation of its kind in 77 years.
• October CPI and payrolls are also at risk of being permanently lost.
• White House officials warned the shutdown could shave 1–2 percentage points off Q4 growth.

Economists say GDP impact will be modest, but the missing data leaves the Federal Reserve flying blind just weeks before its December meeting.

With no inflation or labor reports to anchor expectations, markets sharply reduced the probability of a December rate cut from nearly 63% to under 50% in a single day.

Tech Cracks as Investors Rotate Out of AI

The end of the shutdown failed to calm markets. Instead, tech stocks — especially AI beneficiaries — saw their steepest declines in a month.

• Nvidia plunged 4.7%
• Tesla sank 7.6%
• Broadcom fell 5.4%
• Alphabet slipped while Disney dropped nearly 8% after mixed earnings

Analysts said the rotation — into healthcare, consumer staples, and energy — marks the first meaningful attempt by investors to move out of overcrowded, high-multiple AI trades.

The Nasdaq also broke below its 50-day moving average, a key technical level it had held since April.

“This is a healthy consolidation,” said Ron Albahary of Laird Norton. “AI capex will pay off long-term, but we’re still waiting for the real economic benefits.”

“Buy the Rumor, Sell the News” Hits the Market

Earlier in the week, optimism surged as Congress made progress on the shutdown bill. But Thursday’s drop mirrored a classic market reaction: the relief rally faded once the expected event — reopening — actually occurred.

Markets are now:

• pricing in fewer rate cuts,
• facing missing economic reports,
• and watching corporate layoffs continue to rise.

Consumer sentiment has fallen to its lowest since mid-2022.

Big Movers: Winners and Losers

Losers:

• Mega-cap tech, especially AI, Semiconductor names, Consumer discretionary
• Disney on earnings worries and a brewing distribution fight with YouTube TV

Winners: Healthcare, Energy, Value stocks,

Cisco jumped 5% after raising its full-year revenue outlook

The S&P Value Index is up 1.4% this week, while the Growth Index is down 0.7%, highlighting the dramatic shift.

What’s Next?

Markets will now watch:

• Whether October CPI, payrolls, or unemployment can be reconstructed
• Fed speakers, who remain divided on inflation vs. growth
• Nvidia earnings next week — considered a “sentiment reset” for the AI trade
• How quickly government agencies can restore modeling, forecasting, and publishing systems

With the shutdown finally over but data missing and rate-cut hopes fading, traders expect higher volatility in the coming weeks.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Stocks Sink as Shutdown Ends and AI Trade Unravels first appeared on Finblog.