It's hard to say Friday was a relief rally, but it felt like one. Communication Services (XLC) and Consumer Discretionary (XLY) led the way, but some individual companies took a hard hit. The other growth sector that followed was Technology (XLK).

Heat Map

It was a tough week, but it ended with a bounce despite the Consumer Price Index (CPI) number triggering a spike in rate-hike expectations.  There seems to be a shift in those who think a rate hike could be one and done (dovish) rather than the start of a series of hikes. That said, a few firms have added two hikes for the remainder of the year. I don’t think a rate hike makes insurance cheaper, gives a manufacturer pricing power, or will trigger a mad dash for ice cream in Erie, Pennsylvania.

AI Doomsday Madness

The artificial intelligence (AI) doom campaign is shifting into overdrive, as Frontier AI players make their move to have Congress create a competitive moat that not only ensures their profits but also keeps them in control, as the key part of their cult believes they have the solutions and should marshal the future. 

It's anti-American and transparent. I only hope we don’t let this lead slip to China because they are the real terminator waiting for America to fumble the lead.