Zero Hour Today: AI Stocks Slide as Hot PPI Shakes Markets, Small Caps Rally | $IWM $QQQ $SPY
Markets opened under pressure following a hotter-than-expected Producer Price Index (PPI) report, but an unexpected rally in small-cap stocks quickly changed the narrative. As money rotates out of crowded AI trades, could the Russell 2000 and emerging defense technology companies be positioned to benefit?
In today’s episode of Zero Hour Today, JT from Hidden Gems Stock Research breaks down the latest market volatility, shifting Federal Reserve expectations, and major developments across our small-cap defense and technology watchlist.
Topics Covered
📊 Market Volatility & Inflation
Hot PPI data, Treasury yields, and shifting Fed rate expectations.
Why $QQQ and AI-related stocks are struggling while $IWM and the Russell 2000 outperform.
Capital rotation away from AI infrastructure and into other market sectors.
The outlook for $SPY, gold, Bitcoin, and interest rates heading toward year-end.
🚀 Defense Tech & Small-Cap Stock Updates
$LPTH – LightPath Technologies: A new $6.3 million follow-on optical assembly order brings awards from an unnamed counter-UAS customer to more than $19 million since July. Could Ondas Inc. be the customer? JT discusses the possibility and why LightPath’s germanium-free BlackDiamond technology could provide a competitive advantage.
$TAKOF – Volatus Aerospace: Breaking down the company’s planned acquisition of AISPECO, its expansion into aerial intelligence and European defense markets, and JT’s long-term investment thesis, including his speculative $4 price target and dilution risks.
$ONDS – Ondas Inc.: Counter-drone opportunities, defense acquisitions, international expansion, and the latest coverage from AUSA 2026.
$RCAT – Red Cat Holdings: New insights from the Zero Hour Group’s AUSA coverage and why the company deserves another look.
$RKLB – Rocket Lab: A sharp selloff following the reported delay of its Neutron rocket launch and potential longer-term opportunities.
Additional Discussion
JT also explores why persistent energy inflation could create an interesting setup for gold, how geopolitical tensions are affecting oil markets, and why disciplined research matters when investing in volatile emerging companies.
Coming Soon: More exclusive AUSA 2026 interviews, defense technology demonstrations, and company coverage from The Zero Hour Group, including footage featuring Ondas, Red Cat, Kopin, and other defense innovators.
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Disclosure
The information provided in this publication is for educational and informational purposes only. Nothing in this content should be interpreted as a recommendation, solicitation, or offer to buy or sell any security. I do not provide personalized investment advice or individualized recommendations. All examples, tickers, scenarios, and analyses are strictly for general educational discussion.
The views expressed are my own and do not represent the views, policies, or recommendations of any employer, broker-dealer, or affiliate. Any securities referenced are used solely as case studies to demonstrate research methods and analysis frameworks.
Investing involves risk, including the potential loss of principal. You are solely responsible for your own investment decisions. Consult a licensed financial professional for personalized guidance.
