What a great way to begin the week - initially, stocks got a bid from Iran war headlines, and Treasury is working to stave off Yen weakness. Still, after some wall-flipping, the newest narrative reemerged: hyperscalers are going to get paid, and the artificial intelligence (AI) gambit will live up to the hype.

A Different Kind of Panic

And just like that, the panic pendulum has swung back toward the need to get in the market, especially in those names that the Street questioned and punished for so many weeks.

Investors dumped safe-haven names as if the coast were clear.

The S&P 500 (SPX) is knocking on the door of a new all-time high.  It's been a formidable resistance point, so closing above it would add gravitas to the move.

Is Growth Ready for a Close-Up?

I like the factor quilts with no red and widespread distribution of gains. Most noticeably, growth faded this year against momentum, and then against value.

Small-Caps keep bringing it!

Lots of Room

Growth peaked last year with Technology (XLK), but never regained its mojo. That could be changing, as the risk-reward ratio has been flipped on its head, and growth is now more “value” than value.

Manufacturing Boom – Gets Stronger

The Institute for Supply Management (ISM) Manufacturing number yesterday was amazing, building on its seven-month growth spurt.

Employment has surged into expansion. And the overall economy growth trend is 21 months and gaining speed.

Economists want the Fed to stop this: That’s Nuts!

After the close, Palantir Technologies (PLTR) crushed Wall Street’s consensus.

The shares soared in after-hours trading.

After the close today, SpaceX (SPCX) will post its earnings. The Street is focused on lock-up releases, but that might be the perfect backdrop for a positive surprise from the business.

Today’s Session

Lots have happened since your head hit the pillow.  A major development in the world of memory.  Memory and storage names are erupting higher.

The word is that the Trump administration is on the cusp of banning US imports of Chinese data center components.

US names popping:

• AAOI
• COHR
• LITE
• POET
• CRDO

Meanwhile, WTI is under $80.00.  Scott Bessent said a deal to open the Strait could happen in 24 hours. Operative word “could.”

Comments

And if it does the real question is will it last longer than 24hrs? James Sheperd on 8/4/2026 9:42:54 AM

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