President Trump took on a softer tone overall, especially on the Iran war, sending crude oil (WTIC) tumbling.

The swift decline from close to $105 in late October to $88 yesterday underscores that ships moving through the Strait of Hormuz were overshadowed by media attention to increased hostilities after the midterms.

The notion of flipping a switch to turn off the war is misguided and emboldens Iran, but they have their own reasons for seeking an end to this conflict.

Big Tide

Two tides lifted most of the market yesterday. Crude oil retreated, and the market continued rotating out of the artificial intelligence (AI) trade. 

Consumer Discretionary (XLY) enjoyed its strongest session of the year, powered by retail and services.  The sector last surged like this in the second half of 2025. The chart hints at near-term resistance at the top of the channel, then more upside potential.

Rotation

Yesterday was less about a retreat from momentum and more about the robust moves elsewhere. Low-volatility, value, and revenue led the way, underscoring a focus on well-known names and businesses, regardless of absolute valuations.

Cash isn’t leaving the market; it's just rotating.

I think the AI selloff is overdone, and buyers will return with tepid steps that initially favor hyperscalers, then chips, then component plays or bottlenecks.

Today’s Session

Lots of economic data came out this morning, and it's all great news for the stock market.

Initial jobless claims dipped to 189,000.

Productivity came in well above consensus and markedly improved from a year ago.

I’m in the camp banking on a renewed productivity miracle; more importantly, Kevin Warsh is in the same camp.

It’s true actions to slow data centers could dent this, but it will not be derailed.

Comments

Tech Tantrum Blood Bath!!! Blue Wave wash out Panic on AI Data Center slowdown.... Aaron Mancina on 11/5/2026 10:18:40 AM

The Federalist nailed it: after a deeply unpleasant campaign season, democrats soothe economically anxious Americans with a screeching message of lawfare jihad. What a relief.... Yossarian on 11/5/2026 11:30:00 AM

crooked hedgies and ibanks will continue to pound many will fail soon as their leveraged bets turn sour still too early to buy anything marco on 11/5/2026 12:52:43 PM

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