Yesterday, investors remained in defensive mode, buying food, beverage, and tobacco stocks and selling off Materials (XLB) and Industrials (XLI). Interestingly, Communication Services (XLC) and Technology (XLK) were a wash.

When the Wealthiest Ruled

There was a time when the entire nation lived on processed foods, and Consumer Staples (XLP) made up more than 15% of the whole S&P 500 (SPX) market cap. Now, the sector is primarily defensive and accounts for less than 5% of the market.

It can’t lead the market, but it is extremely oversold, and will find buyers as the market digests gains.

Happy Birthday, AI Rally

• U.S. Consumer Price Index (CPI) data drive bets of more big Fed rate hikes
• MSCI Global Index reverses losses after hitting the July 2020 low
• Wall Street stocks rally, dollar (DXY) turns red, oil settles up 2%

The market rallied on bad news, which was a huge buy signal.  Not long after ChatGPT was unveiled, the market hasn’t looked back.

According to Ryan Detrick, this rally is still young, with lots of upside potential.

Today’s Session

All major indices are in the green following comments from Fed Waller, who said he expects the Fed to cut rates further this year, but at a ‘careful’ pace.

A list of some of OpenAI’s top customers by token consumption shows how transformative AI can be across industries and niches.