Tech Trade Turns Ugly
Hot inflation data burns up AI, tech and small-cap stocks as CoreWeave unravels and ‘neocloud’ names in ‘crash mode’; also the chart looks precarious.
Hotter Inflation and AI Weakness End the S&P 500’s Run Without a 1% Drop
A hotter-than-expected September CPI report and a deepening selloff in AI names sent the S&P 500 down more than 1% for the first time in 54 sessions, with the Nasdaq and small caps falling nearly 2%.
Tech Could Bounce Here, but That Doesn’t Mean the Selloff Is Over
The either/or market continued for another day with tech stocks continuing to fall. They’re nearing interesting support levels, but a bounce could be followed by more downside.
How to Allocate a Safe Portfolio as Indices Mask Broad Weakness
Passive investors continue to be too complacent about economic and geopolitical risks.
A Broad Friday Rally Takes the S&P 500 Just Below Record Highs
Nine of 11 sectors rose, powering the S&P higher despite semiconductor weakness. Small-caps, though, posted a fifth straight weekly loss for the first time since 2022.
AI Needs Somewhere to Plug In: 7 Stocks That Have the Power
OpenAI, Anthropic and others are searching for power-ready data center sites, creating opportunities for companies helping AI overcome its biggest infrastructure constraint.
The AI End Game Appears to Be Growing Near
Unfortunately, it is hard to see the AI infrastructure buildout maintaining this pace.
Another Day of S&P 500 Losses Saved By Iran Deal Headline
Rumors of a potential deal to open the Strait of Hormuz lifted stocks out of the red, but another rise in yields and oil prices kept them under pressure.
That’s a Wrap!
The major domestic equity indices closed flat to slightly lower on Thursday after having tested much lower levels earlier. The S&P 500 and Nasdaq Composite both closed very close to flat on the day. It appears that Washington and Tehran are exploring what would be a phased arrangement that would restore the ability of commercial traffic to navigate the Strait of Hormuz.
Four of the 11 S&P sector SPDR ETFs closed higher, with Communication Services ($XLC) atop the performance tables. The Materials ($XLB) were the big losers. Everpure ($P) was the top-performing stock in the S&P 500, while Gen Digital ($GEN) was the worst.
Though stocks rallied well off of their lows, crude oil did not rally and Treasury debt securities sold off yet again. The U.S. 10-year Note paid 5.19% by day’s end, up 8 basis points.
The big news of the day for single stocks was probably made by Oracle ($ORCL). The stock fell 3.5% after Bloomberg News reported that the company was citing force majeure in order to protect itself from a data center project being built in New Mexico if it is delayed.
Have a good night gang. Dougie, I believe, will be out again tomorrow, but someone else is destined to be here with you as I cannot work through the close tomorrow.
Get some rest, gang and God bless. Zero dark-thirty comes early.
Position: None