Oil’s AI Hedge Works, But Don’t Mention the R Word: Liam Denning

Earlier this year, around the time Nvidia Corp.’s market cap eclipsed that of the entire S&P 500 energy sector, I wrote about whether oil and gas stocks might offer a decent hedge when AI-fever breaks. The past several weeks have offered a test.

The good news for energy bulls is that the sector has acquitted itself well since early July, when Nvidia’s Magnificent Seven cohort, and the wider technology sector, peaked. The less good news is that things got complicated during the panic around the health of the labor market that kicked off in August.

Big Tech had gained 36% from the ...