Yesterday was a mixed session despite the Dow Jones Industrial Average trading >48k for the first time. Large cap outperformed small and value outperformed growth as many of the AI related stocks and other thematic favs were under pressure. This morning S&P futures turned lower during the European session. UFC CEO Dana White was at the NYSE for an interview on CNBC, and like a fighter in the third round after eating thigh kicks for 10 minutes, the index continued to fade after the Open. Failing to hold the 20d ma ~6790 we’re at session lows, off >1% and back-filling the gap up on 11/10. High-beta, narrative plays are under some of the most pressure. Nuclear, rare earth, genomics, neo data center providers are all groups that have most stocks down 5-10%. However, even large cap AI plays are selling off. A WSJ article on how Chinese hackers used AI to gain access to corporate and government systems is likely adding to the emerging industry concerns around financing and profitability. The equal-weight index is outperforming in a mildly positive outcome. Small caps indexes are down about 2%. Energy and Healthcare are leading to the upside. Chip and memory stocks as well as hardware/storage are under pressure (ICE Semis -4%). Communication Services is down as Disney sells off following earnings this morning. Management noted they feel good about the demand for the parks and results there were inline with their expectations, while cruise demand was “very, very strong.” Tesla weakness is a major factor in Consumer Discretionary’s decline today. The big story overnight was the end of the government shutdown after the House passed a bill to fund the government through January 30th. White House officials said that September employment data will be released, but October numbers will likely never be published. In any case, the data are likely to be sloppy for a while, likely getting right just in time for another shutdown.

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