Thu, Jan 8, 2026

The S&P 500 is currently fighting a war with itself, paralyzed between the crash in global tech and the boom in national security. The market closed flat on Thursday, masking a violent rotation in capital allocation that signals a shift in the market's perception of the new administration’s priorities.

Donald Trump called for a $1.5 trillion military budget for 2027. The announcement acted as a starter pistol for the defense sector, driving iShares Aerospace & Defense (ITA) to fresh highs.

Counterbalancing this surge was a sharp pullback in mega-cap technology.  ...