Weekly Market Commentary for Long-Term Investors

U.S. equities declined broadly as renewed anxiety around artificial-intelligence disruption weighed heavily on software and growth stocks. Strength in Utilities, Basic Materials, and Energy reflected a defensive rotation into yield and real-asset exposure, while Financials and Communication Services posted the sharpest losses. Technology and Consumer Cyclical also lagged as investors questioned valuation resilience and the durability of AI-driven momentum.

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.