Welcome to September…An ugly day with QQQs -3% with Semis -8% leading the way down. NVDA -9.5% tied for its worst day in the last 2 years. Heard varying reasons for the weakness including weak Sept seasonality (weakest month over last 10 years), weaker econ data from China and ISM, China/Japan geopolitical news this morning, BOJ comments around not done tightening fueling carry trade unwind, etc. VitalKnowledge with some more macro color:
“Fed expectations shifted slightly in a dovish direction, with the market pricing in 34bp worth of cuts on 9/18 and 101bp for the year. The DXY rose 13bp as the USD jumped ~30bp vs. the EUR and GBP (but it slumped 81bp against the JPY due to worries about additional BOJ policy tightening). Brent tumbled nearly 500bp to $73.70 due to concerns about consumption, higher OPEC+ production, and a deal in Libya to end the recent output standoff”
Next catalysts for TMT are Citi conference which starts tomorrow, iPhone event on the 9th, Jensen/GS TMT conferen…
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