Welcome to Markets Desk, your midday read on what's moving money and markets.
Semiconductors have slid into bear market territory, and Goldman Sachs is telling clients not to panic but to pivot. The firm is flagging three alternative investment themes for investors rattled by the AI trade's volatility, suggesting the opportunity set extends well beyond chips and the names that rode the first wave of artificial intelligence enthusiasm.
Speaking of where money flows, history offers a reliable signal when stocks join the Nasdaq one hundred. Index funds tracking that benchmark are required to purchase shares of any new addition, creating mechanical buying pressure that has consistently lifted prices in the near term. It's one of the cleaner cause-and-effect relationships in passive investing, and traders have learned to front-run it.
Meanwhile, defense is drawing fresh attention as global military budgets climb to record levels. Geopolitical pressure from Europe to the Pacific is translating directly into procurement spending, and financially strong contractors with long-cycle government contracts are positioned to capture years of that runway, making the sector a compelling conversation for both growth and income-oriented portfolios.
That's the tape. Markets Desk, signing off the floor.
