After yesterday’s huge rally (S&P +1.5%, NASDAQ +2.3%), stocks are giving some back today. Once again, the move is AI-related, where the Magnificent 7 is down 1.7% this morning after gaining 2.7% yesterday, led by being down 3% on the news that Softbank has sold its entire $5.8B NVIDIA position. Softbank has been a major investor in OpenAI and is very bullish on the AI theme. The move down of NVIDIA has taken semiconductors down 1.8%. NVIDIA had its best day since April yesterday, +5.7%.
On a positive note, the even-weighted S&P is up 0.3% this morning, while the market weight is down 0.3%, a much broader move to the upside. For the trailing week, the even weighted S&P is up 1.4% compared to the market weight +0.2%. This is a move in the right direction, given that LTM, the even-weight S&P is up only 2.2% and the market weight is up 13.5%, the biggest gap in decades.
With the banks closed for Veterans Day, U.S. Treasuries aren’t trading, though the futures market in the 10-year is showing a yield down 4 bps to 4.07%. It’s interesting to note that due to the sticky interest rates, along with record high price points, the Trump administration is working on offering a 50-year home loan, and now a 15-year car loan, to lower monthly payments. Trump has also talked about a $2,000
Even-Weighted S&P 500 Outperforms as Market Breadth Improves
