The February 13th inflation data sent equity markets sharply lower in the biggest downward move for the market so far this year. For the vast majority of stocks, the year has gotten off to a soft start. The equal weighted Russell 1000 was down by 2.56% YTD through yesterday. The Russell 2000 index of small cap stocks was down 3.02% YTD and remains more than 15% below its peak level reached in 2021. Even prior market leaders Apple (-3.76%) and Tesla (-25.95%) are not performing in today’s market. But the overall market level is up due to a narrowing number of large cap tech stocks that have seen outsized gains, with a few names tied to the AI theme going parabolic in recent weeks.

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