The S&P 500 (SPX) finished down more than 1%, as steep declines in Technology (XLK) and Communication Services (XLC) names offset one of the best sessions in a long time, with 67% of components closing higher yesterday.

Consumer Staples (XLP) led the positive side, with household and personal products rallying more than 5.0%. That is amazing for mostly low-volatility, low-beta names.

Ironically, I think Consumer Staples are overvalued, while a large swath of Technology is oversold, but that isn’t a buy signal, as narrative and panic are driving the action.

The good news is money isn’t fleeing to the sidelines.

Low Vol & Value

Low volatility rocked big time yesterday, while value and revenue also caught bids.

Equal Weight S&P 500 ETF (RSP) is now back above its 50-day moving average, with a rate of change (ROC) gaining momentum.

Fear and Loathing

The Fear & Greed Index remains in “extreme fear,” after being lodged in “fear” for the past week, month, and year.

Main Street investors remain bearish, as they have been for a long time.

CDS & Losses Surge

Meta Platforms (META) joined other mega-cap names in losing a trillion dollars in market value. Credit default swaps (CDS) for hyperscalers and semiconductors continue to move higher. It makes raising money more expensive, although not impossible.

Open Wallets

The Financial Times (FT) downplayed reports that OpenAI has secured a $30.0 billion raise at a $1.25 trillion valuation. It’s being called an “opportunistic raise,” ahead of an imminent initial public offering (IPO).

It's an impressive amount of money and valuation, given where the company was marked at the start of 2025.

Today’s Session

Stocks opened lower led by the Dow, while oil tops $100.00 a barrel.

Iran is threatening to attack U.S. bases, warships, and civilian targets in Gulf countries, this includes optical cables and data centers, if the U.S. resumes strikes.

SpaceX (SPCX) is reportedly seeking access to at least 80,000 U.S. cell sites to support a nationwide wireless expansion, signaling greater competition for wireless carriers such as T-Mobile (TMUS), AT&T (T), and Verizon (VZ).

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