Show Notes
Stocks are rebounding after another AI-driven sell-off, with housing starts and durable goods topping estimates despite December declines. Still, US equities are off to their worst relative start since 1995, as investors await the GDP report and reassess positioning.
The S&P 500’s premium has widened to roughly 40% over global peers, prompting debate over allocations. International markets are up about 8% year to date, while the US is flat, driven mainly by multiple expansion rather than earnings.
Japan will deploy $36B into US energy and critical minerals, part of a broader $550B framework, backing a major Ohio gas project tied to data center demand.
Trending: Moderna jumps on FDA reversal of flu review; New York Times gains after Berkshire stake; Palo Alto Networks falls on lowered profit outlook.
Takeaways:
US underperforms global markets on valuation gap
International gains driven by multiples, not earnings
Japan invests $36B into US energy build-out
AI volatility pressures software and cybersecurity
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