S&P 500 closes up 1%; consumer discretionary leads, energy lags

The S&P 500's broad advance, led by consumer discretionary while energy lags, points to a risk-on rotation favoring rate-sensitive and growth sectors over commodities. The outsized gains in Strategy, Palantir, and Tesla suggest a crypto/AI-linked momentum trade is driving index performance, but the mixed breadth—with notable tech names like Broadcom and ASML falling—signals selectivity beneath the surface. For markets, the key question is whether this sector leadership persists as a signal of durable demand or reflects a short-term squeeze in high-beta names.