Market Overview - Stocks are mostly seeing gains with the Dow roughly flat, S&P 500 up about 0.4%, and NASDAQ up about 0.7% [2][3] - The 10-year Treasury yield is down two basis points to 4.04%, while the 30-year yield is down to 4.66% [4] Sector Performance - Mega-cap stocks are leading the rally, particularly in communication services (Alphabet), consumer discretionary (Tesla), and technology (chip stocks) [5][6] - Defensive sectors are underperforming, with consumer staples down about 1% and healthcare off about 0.8% [6] Federal Reserve Insights - The Fed is widely expected to cut its benchmark interest rate by 25 basis points, with discussions on the potential for additional cuts later in the year [9][10] - Inflation is currently about 3% while job growth has weakened, raising concerns about the Fed's dual mandate [10][11] Company-Specific News - Texas Instruments shares are down about 3% due to an anti-dumping investigation launched by China targeting American semiconductor companies [49][51] - CoreWeave shares are up 8% after closing a $6.3 billion order with Nvidia, highlighting strong demand for AI infrastructure [55][56] - Union Pacific's stock is up modestly after Citigroup upgraded it to buy, citing improved clarity on its merger with Norfolk Southern [58][61] Investment Strategies - Analysts suggest that the stock market does not necessarily need a rate cut to move higher, as earnings growth remains strong [23] - There is a focus on yield curve steepeners as a favorable risk-reward trade amid expectations of further rate cuts [32]

Market Trends & Sentiment - The market's current highs, reminiscent of pre-peak levels in November 2021, are accompanied by a "memeish mood," but it's less extreme than in 2021 [1] - Investors are taking profits from tech stocks and seeking temporary alternative investments while the market is at all-time highs [1] - A return to retail investors' favorite stocks like Nvidia and Tesla is expected in about a month, leading to a cooling off of meme stocks [1] Portfolio Strategy & Diversification - The current market environment makes diversification a hard sell, but it's a good time for concerned investors to exit before potential market corrections [1][2] - International stocks, including international ETFs, are a decent bet, especially in the tech sector, given the global spread of AI development [2][3][4] - Emerging Asia, particularly China, is considered a speculative investment due to data reliability and legal restrictions for American investors [6][7][8] AI Investment Landscape - The AI trade is expected to continue due to significant investments from companies like Meta and Microsoft, each investing $80 billion annually, and Alphabet increasing its capital expenditure by $10 billion [5] - The US dominance in AI tech is unlikely to continue, with the EU, Latin America, and Asian countries also making advancements [4]