The market was essentially unchanged, with the S&P 500 finishing at -0.05%, but it wasn’t internally.

Mag Seven & Friends

What’s happened over the past two weeks is a reconfirmation that the AI trade is a long way from being over, and it is now expanding beyond the Mag Seven, but that doesn’t mean the Mag Seven is done.

These names are just sharing the wealth as the pie continues to grow.

On Friday, large-cap growth and momentum were the only factors higher in the session.

Institutions Play Catch-up

The big boys are shelling out big bucks to catch up with Technology (XLK).

The problem is creating a strong tide that lifts all ships.  For the most part, growth sectors rock and the rest are watching, or vice versa.

Market Breadth	NYSE	NASDAQ
Advancers	943	1,659
Decliners	1,799	2,879
New Highs	128	265
New Lows	25	58
Up Volume	1.83 billion	5.21 billion
Down Volume	2.71 billion	3.67 billion

Looking Ahead to the Fed

There will be a lot of work and commentary on where to position oneself for the FOMC rate cut.  We will share some interesting tables on the FOMC decision on Wednesday.

Today’s Session

There is lots of excitement about the Fed cutting this week, but there is also a ton of economic data before, and after, the FOMC gathering.

There are lots of trade headlines, but the market is taking a wait-and-see approach.

The big question is, with the Fed becoming accommodative, how much will the rally broaden out.  As much as it’s a feel-good story, when more stocks participate, there have been a series of false starts. When in doubt, large cap growth steps up and leads the way.

Empire Fed

Empire State Fed Survey comes in below consensus with mixed internals.

Its good to see prices down, but employment is lower as well (hello Jay Powell).

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