US technology stocks now account for a record 56% of total US stock market cap.
At the same time, defensive stocks make up just 16%, AN ALL-TIME LOW. This has NEVER happened. Source: Global Markets Investor, Topdown charts
The move of the week!
Pharma stocks just had one of their strongest days in years, with large-cap names surging 9% after months of being stuck under political pressure. The move came from a wave of policy and industry news that reshaped how investors viewed the sector almost overnight. Here are the 3 catalysts: 1/ Trump’s announced a 100% tariff on imported branded and patented drugs. At first, markets braced for the worst. But as details came out, it became clear that the biggest U.S. players like Pfizer, Merck, Lilly, and J&J were largely shielded thanks to their heavy domestic production. Instead of being hurt, they were in position to benefit. 2/ Pfizer then cut a high-profile deal with the administration to lower Medicaid prices in exchange for tariff relief. That eased regulatory fears and sent a strong signal that other companies could strike similar deals, giving the market confidence that the sector had a workable path forward. 3/ The White House rolled out TrumpRx, a direct-to-consumer pharmacy platform designed to cut out middlemen and bring more predictability to drug pricing. Investors loved the idea of a simpler, more transparent system that reduces uncertainty around future profits. This trade goes into the "value with a catalyst" bucket... Source: Stockmarket.news, zerohedge
October is historically the most volatile month of the year for stocks.
Source: Brew markets
The U.S. Securities and Exchange Commission (SEC) is reportedly developing a plan to allow stocks to trade like crypto on the blockchain
It will treat shares of companies like Apple, Tesla, and Nvidia as digital tokens similar to how cryptocurrencies operate. While the initiative has gained support from crypto exchanges and fintech platforms, it faces pushback from traditional financial institutions that profit from the existing market structure. According to a report by The Information, the SEC is already consulting with market participants on regulatory changes that would make these tokenized securities possible. Source: cryptonews.com
Historically, shutdowns have not been the market killer many fear.
The last 6 shutdowns all saw the S&P 500 rise from start to finish. Even the 35-day freeze in 2018–19 saw the index surge nearly 10%. Yes, Powell’s dovish pivot helped then but the bigger takeaway is clear: markets shrugged off the shutdown and rallied. Why? Because markets hate uncertainty, but they also know every shutdown will eventually be resolved. Source: Stockmarket.news
Sign of strength of markets
Source: Ryan Detrick
Small cap junk stocks have beaten quality stocks so handily that we are at Dot-Com bubble performance gaps.
In the last 6 months, the small cap Russell 2000 index, which has a ton of money-losing companies, beat the higher quality S&P 600 by 6.4%. That is equal to April 1999. Source: Jeff Weniger
The largest marijuana ETF by market capitalization is soaring
The largest marijuana ETF by market capitalization is soaring after President Trump's Truth Social account published an overnight informational video highlighting the health benefits of cannabidiol (CBD), an active ingredient in cannabis derived from the hemp plant, for seniors. On Sunday evening, Trump's social media team published a video that began with bold text reading, "You can revolutionize senior healthcare." The video highlights that CBD can "restore" the endocannabinoid system, touting benefits such as reduced pain, better sleep, and lower stress.
