JUST IN: OpenAI to launch a $500 "ChatGPT Pro Max" plan

🚨 SOMETHING VERY STRANGE IS HAPPENING IN THE STOCK MARKET. The S&P 500 is near all time highs, but beneath the surface, a completely different market is forming. Almost half of S&P 500 stocks now are moving differently from the overall market. Goldman says this kind of divergence looks very similar to the Tech Bubble. The biggest reason is market concentration. The 10 largest stocks now make up around 40% of the S&P 500, and many of them are riding the AI boom. Because these companies are so large, they can keep pushing the entire index higher even when a large part of the market is struggling. Meanwhile, the rest of the market is dealing with rising bond yields, $100+ oil, a stronger dollar and higher borrowing costs. These pressures are hitting companies that are more sensitive to rates, energy costs and the broader economy. So the S&P 500 being near record highs doesn't mean everything underneath is doing well. A small group of massive companies is making the overall market look much stronger than many stocks actually are.

Swinging $DRAM calls 👀

The presumption that the Fed raising short-term rates reduces inflation is predicated on the belief that higher rates reduce demand and investment. But what if higher rates don’t reduce demand and investment because the demand for intelligence and energy is unaffected by higher rates because winning the race for super intelligence has a near infinite ROI and the demand for compute will remain incalculable. Why won’t higher rates at this unique moment in history therefore lead to more inflation as interest costs are embedded in everything? And the problem is compounded as the more the Fed raises rates, the more inflation we will have and the more the Fed will need to raise rates further and so on. But what if the old models don’t apply to the current paradigm and the Fed is wrong? I think the Fed might have just made a mistake. Am I right or am I wrong?

BREAKING: Iran's President says they're ready to finalise a deal with US before the midterms elections. His comments come right after President Trump predicted Iran is waiting to see midterm results.

Happy Thursday.

Fidelity Digital Assets says Bitcoin has been the top-performing asset in 11 of the last 15 years. Imagine watching that happen for a decade and still thinking owning zero Bitcoin is the sophisticated position.