Worries about the sustainability of the AI trade surfaced once again, driving down a swath of related stocks, but other stocks rallied as Treasury yields dropped the most since August 2025, seeing equal-weight vs cap-weight the most extreme since 2024.
Blowout SpaceX results lifted a swath of AI names, sending the Nasdaq up over 1%.
Stocks recovered from early losses as Tech bounced and the largest drop in 10- and 30-year yields in over a year saw five sectors gain over 1%.
Eight of 11 sectors rose and the Dow Jones Industrial Average gained for a third straight day, but another selloff in chipmakers kept the S&P 500 little changed and the Nasdaq in the red on the lightest volume of the year.
An FT report that OpenAI’s revenue is running notably below earlier estimates sent AI shares sharply lower, but beneath the surface most stocks held up as Treasury yields eased and President Trump said the U.S. won’t attack Iran before the midterms.
Bitcoin is sharply higher as a hedge against a weakening dollar.
When the best-performing stocks on your screen are micro-cap junk and crypto, that is just money chasing action.
Here’s what caused the rally (and what didn’t) — and where Bitcoin faces its next test.
Let’s dig in to the sentiment, options, and momentum indicators.
