Peace Hopes Lift Stocks as Market Rotates Again

Stocks bounced broadly on Wednesday, but in a very different way from the AI mega‑cap rallies many investors are used to. Small caps, cyclicals, and higher‑risk “high‑beta” names led, while tech and growth only clawed back a bit of recent losses. Volatility cooled, yet the VIX near 25 says markets are still on edge.

The driver: headlines about Iran truce prospects and eased oil worries. The catch: inflation pressures are still building, recession risks are edging up, and stress is showing in private credit. For a tech‑heavy, index‑only portfolio, the message is that leadership is shifting and today’s peace rally rests on fragile macro ground.