Midday Sector Check Indices are higher at midday. S&P up about 0.6%. Nasdaq leading with a 1.1% gain. Russell up 0.84% — small caps continue to catch a bid. What's working: Semis are ripping. The chip names are extending Friday's bounce hard. NVDA +3.5%, AMD +3.6%, AVGO +4.7%. SOXL is catching a bid and acting like last week's selloff was just a shakeout. Oracle upgraded to Buy and running +11%. Big tech broadly green. MSFT +2.9%, PLTR +6.9%, TSLA +2.4%, META +2.9%, GOOG +0.8%. APP continues to be a monster at +15%. Gold holding above $5,000. PBoC bought for the 15th straight month. China reportedly telling banks to diversify away from Treasuries. That's a structural bid under metals. Dollar weakness (DXY near 97.3) is adding fuel. Financials and Energy still catching rotation flows. The "Great Rotation" theme is alive. JPM, GS seeing inflows as the yield curve steepens. Energy quietly outperformed everything last quarter (+16%). What's not: Software remains under pressure. INTU -1.2%, ACN -2.5%, ADP -2.4%. There's a clear split happening — AI infra names (chips, power, data centers) are being bought while the software layer is being sold. AAPL fading at -2.2%. Sticking out as a notable laggard in an otherwise green mega-cap tape. Healthcare is red. MRK -3.7%, AMGN -2.7%, ABBV -5%, LLY -0.6%. Broad weakness across pharma and biotech. Treasuries flat but the China headline is the one to watch. 10Y at 4.21%. The "sell America" narrative from China curbing UST exposure could become a bigger story if it persists. Big picture: VIX crushed 18% to 17.76. That's a big sentiment shift from last week's jitters. But we've got NFP Wednesday and CPI Friday, so don't get too comfortable. The data-heavy back half of the week could easily reverse this calm. Stay nimble. 'Scott
