The market finally found equilibrium, showing resilience to early selling.

Gains are concentrated in more defensive sectors, with the Utilities (XLU) sector widening its week-to-date gain. Materials (XLB) is showing some strength today, after a notable retreat yesterday, with Newmont Corporation (NEM) rising driven by gains in gold and silver prices, while Albemarle (ALB) moved higher following earnings. 

Notably, homebuilders (XHB) reached a 52-week high as 10-year yield drops to 4.048.

In other news, memory stocks were under pressure this morning after CXMT and YMTC (Chinese memory companies) were removed from the Pentagon’s restricted company list.

A notable move we saw from this morning CPI was that CPI excluding shelter is still hotter than expected and worth keeping a close eye on. Meanwhile, shelter has continued to cool since October.

This week we have seen wild moves in the broad market, with about 115 stocks in the S&P 500 having declined 8% or more in a single day. 

Despite this, we are seeing a constructive rebound attempt, with improving breadth, which could suggest yesterday’s selloff is being actively faded.

As a reminder, the market will be closed on Monday for Presidents' Day. Have a great holiday weekend!