Investor sentiment is shifting once again, with the yield curve and energy sector leading the way. The yield curve, a key indicator of economic health, has been weighing on investors, causing them to reassess their exposures. Meanwhile, energy stocks are experiencing a notable rebound, driven by renewed concerns around the Strait of Hormuz and the future of US-Iran diplomacy.

While earnings season is currently underway, the reaction to CoreWeave’s recent IPO has shifted the bar for artificial intelligence from simply delivering growth to proving that growth can be financed without undermining the economics of the buildout. This new requirement has led to a forced artificial intelligence re-risk and positioning reset, with investors re-evaluating their exposure to the sector.

However, it’s important to note that today’s action feels more like a reset than a wholesale regime change. The next confirmation of a broader shift in leadership will come from whether the pick-and-shovel names and hyperscalers can begin to participate in the rally, rather than simply funding it. Until then, investors may continue to reassess their exposures and positioning in the face of changing sentiment.