I’m not particularly fond of many of the milestones discussed in financial media. Still, Nvidia (NVDA) reaching a market capitalization of four trillion dollars speaks to several things that underscore the beauty of the American economic system.

• Encouraging and nurturing entrepreneurs.
• Funding ideas.
• The public has access to become part-owners of growing businesses.
• It speaks to visionaries changing our world.

But yesterday’s session was more about the Federal Reserve accommodation getting closer.

A (Near) Perfect Session

All major indices were higher, led by the Russell 2000, and all factors finished in the green. Those big green boxes carried the market.

The AI Halo Effect

Utilities (XLU) have become the Swiss Army Knife of stock portfolios.

Historically, a safe haven that pays out huge dividends is now at the center of a global race to accelerate the development of Artificial Intelligence (AI).

The three growth sectors also made substantial moves.

Bond Yields

The ten-year yield pulled back sharply.

Fear Index

The Volatility Index (VIX) is under 16.00% again. The irony with the continued pullback in the so-called “fear gauge” is that, at some point, the Street will say it's too complacent.

Of course, at some point, those same folks might want to sit out of the prediction game, having gotten everything completely wrong.

Today’s Session

It’s a quiet morning but more good news on the Artificial Intelligence (AI) front shovels more coal into the locomotives that have powered the rally thus far.

Meanwhile, there isn’t a sense of irrational exuberance as investor surveys remain optimistic, but not wildly bullish.

I see a red flag in continuing claims. I have said for over a year the labor crisis won’t come for firing, but a lack of hiring.

Comments

A difficult balancing act when new buy recommendations are made, because the list of “holds” is long. One struggles with selling struggling performers (GEHC) to add UNH. John on 7/10/2025 9:57:35 AM

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