TMTB EOD Wrap
Good afternoon. QQQs -85bps led lower by Semis -3% after some geopolitical rumblings overnight (Trump said that ceasefire is on “life support” and “more seriously considering a resumption of major combat operations than he has in recent weeks”) and a hotter CPI print hit futures although Nasdaq finished in line with where it was pre-CPI. SOX was down 7% at one point but finished a respectable -3% — similar dip buying dynamic we saw in Korea overnight after a top policymaker said the nation should pay citizens a “dividend” using taxes on AI profits.
All in all, semis were up 65% with an RSI >75 so a 3% pullback shouldn’t really register as anything significant, especially with almost every AI semi chart still not having even touched the 10d MA.
Instead, let’s just get straight to the good stuff…
AI/SEMIS
The Power theme getting more love today - lets dive in a bit.
MS announced their Power Basket today (MSXXX800v):