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Michael Kao, CIO at Akadia Capital, reviews the week’s financial trends, noting renewed live fire in the Strait of Hormuz and resulting oil price volatility that ultimately returned crude oil to previous levels.
Kao also highlights a clear divide within technology stocks, with semiconductor companies outperforming software peers. Additionally, labor market data showed cooling payrolls, while deregulation provided new momentum for the Warsh-led U.S. Federal Reserve.
Kao previously discussed the concept of Schrödinger’s oil price and the idea of quantum superposition in crude markets. He has also examined whether the wide distribution of AI benefits can sustain investment returns for frontier compute. These topics remain relevant as market participants assess sector performance and commodity risk.