Weekly Market Commentary for Long-Term Investors

U.S. equities advanced as trade-policy clarity and improving industrial momentum supported a rotation into cyclical sectors. Strength in Basic Materials, Industrials, and Energy reflected renewed confidence in global growth and supply-chain normalization, while Communication Services and Technology also participated in the rebound. Consumer Defensive lagged as investors rotated away from safety and back toward economically sensitive areas of the market.

Investors are being warned that the S&P 500 is “dangerously concentrated,” with roughly one-third of the index tied to the Magnificent Seven. The article argues this fear is often more marketing than math: concentration typically rises when winners keep compounding, and historically, de-risking when it rises has tended to hurt returns. The real risk isn’t concentration itself—it’s making allocation decisions based on a persuasive narrative rather than the data.

WSJ reports Anthropic’s Claude was used in a U.S. operation targeting Nicolás Maduro via a Palantir deployment. Anthropic wouldn’t confirm mission details, and the Pentagon is reviewing the relationship, putting a deal worth up to $200M at risk. The bigger signal: defense adoption can accelerate AI revenue, but it forces a tradeoff between “safety-first” constraints and warfighting demands.