AI "Disruption" to Continue as Investors Search for "Dull, New" Stocks

• Labor market data shows mixed signals with some weather-related spikes in jobless claims and delayed reports, requiring further data for clarity.
• ISM manufacturing data was strong overall, but 'prices paid' remain elevated, indicating persistent inflation pressures.
• The AI trade is evolving from initial creation and build-out to a 'cultivation' phase, disrupting traditional tech business models and shifting focus to beneficiaries.
• A market rotation is observed, with a sell-off in some mega-cap tech stocks (e.g., Alphabet, Amazon) and selective strength in cyclical sectors like industrials, materials, and energy, as well as small caps.

The discussion covers the nuanced state of the labor market, with delayed JOLTS and jobless claims showing some weather-related blips but also potential cracks. ISM manufacturing and services data indicate elevated 'prices paid' despite overall strong manufacturing. The conversation shifts to the AI trade, highlighting a move from 'creating' and 'catalyzing' to 'cultivating' and 'disrupting' existing business models, leading to a rotation out of some mega-cap tech into more cyclical and 'dull, new' stocks.