Mortgage rates move slightly higher, Dow Jones, S&P 500 notch fresh record closes

Market Performance & Trends - S&P 500 up by 006%, marking the fifth straight win [2] - NASDAQ Composite also experienced a win [2] - Dow recorded a record win [2] - Small caps up by one third of a percent [2] - Material sector led with over 1% gain, followed by tech and industrials [3] - Energy sector declined by over 1%, with consumer discretionary also showing losses, primarily due to Tesla [3][4] - Mega caps showed mixed performance, with Microsoft down about 075% and Meta up over 1% [4] - Semiconductors experienced significant gains, with Intel up almost 4%, AMD and Global Foundry each up 35% [5] - Speculative investments like crypto (GBTC up about 3%), solar (TAN), Arc Invest, and IPOs saw money inflow [6] AI & Investment Strategy - AI is reshaping industries, potentially leading to significant unemployment followed by new job creation [8][9][10] - Diversification is crucial, but many companies are heavily investing in AI, comfortable with the perceived risks [12][13] - Investors are showing interest in diversification, including fixed income and alternative investments like gold [17] - There's a growing openness to alternative investments, potentially reaching 20% of portfolio allocation [20] Mortgage & Housing Market - Mortgage rates experienced a slight rise for two straight weeks but remain relatively low for the year [22][23] - Refinance application volume initially jumped with lower rates but decreased as rates drifted up [25][26] - Pent-up demand exists, especially among first-time home buyers (50 million people between 30 and 40) [27][28] - ARM (Adjustable Rate Mortgage) share is increasing, with typical ARMs offering initial fixed rates for 5-10 years at 75 to 100 basis points lower than 30-year fixed rates [37][39][40] Government Shutdown Impact - Essential services continue, but workers may not receive paychecks [43] - Non-essential services like national parks and Smithsonian museums will close [44] - Federal Medicare and Medicaid benefits will not be impacted; Social Security distribution will continue, but staffing may be affected [45] - SNAP benefits will be affected if the shutdown lasts over 30 days [46] - The monthly jobs report will be delayed, creating uncertainty for the Fed's policy decisions [47][48][49]