AI Stocks Up, Crude Below $100 Signal Risk-On Tone After Fed's Rate Hike

• Fed's unanimous 25 bps rate hike was more hawkish than expected, but markets recovered with a 'risk-on' tone.
• Geopolitical developments, including China's request to Iran to de-escalate Houthi attacks, are pushing oil prices below $100/barrel, benefiting equities.
• Tech stocks, particularly semiconductors and AI-related power names like Bloom Energy and Generac, are rallying in premarket trading.
• Lennar (LEN) reported a double miss on earnings and revenue, with lower deliveries and a significant drop in EPS year-over-year, reflecting a stalling housing market.

Following the Fed's unanimous 25 bps rate hike, markets initially dipped but are now showing a 'risk-on' tone. This shift is attributed to easing geopolitical tensions, which are pushing oil prices down, and a rally in the technology sector, especially AI-related power names. However, Lennar's earnings report indicates a challenging housing market.