Pre-market analysis of U.S. stocks: The aftershocks of CPI are still being felt, tech stocks are selling off across the board, and memory stocks continue to lead the declines 🔥
South Korea’s market plunged today, dragging global tech stocks down with it and becoming one of the hardest-hit areas in this selloff. Before the U.S. market opened, SK Hynix, SanDisk, and Micron were all sharply lower.
As expectations of Fed rate hikes rise, concerns about the sustainability of AI financing trades are growing. The only good news at the moment is TSMC’s earnings. But with Nasdaq futures down more than 1% and inflationary pressures persisting, it’s hard to say whether TSMC’s results can steady the AI rally.
The market is broadly defensive right now. As I noted yesterday, investors are taking profits and exiting the memory sector. Meanwhile, CPI and PPI data are prompting the market to reassess the logic behind bets on whether the Fed will raise rates.
I’m still bearish today, especially on $SNDK . First, expectations of rate hikes are rising. Second, Treasury yields are climbing. Memory stocks are under scrutiny, and there’s no positive catalyst. On top of that, it’s Thursday, so there’s unlikely to be an inflow of capital to fuel a short-term recovery. Overall, the market remains defensive.#SpotBitcoinETFsShed$261M
South Korea’s market plunged today, dragging global tech stocks down with it and becoming one of the hardest-hit areas in this selloff. Before the U.S. market opened, SK Hynix, SanDisk, and Micron were all sharply lower.
As expectations of Fed rate hikes rise, concerns about the sustainability of AI financing trades are growing. The only good news at the moment is TSMC’s earnings. But with Nasdaq futures down more than 1% and inflationary pressures persisting, it’s hard to say whether TSMC’s results can steady the AI rally.
The market is broadly defensive right now. As I noted yesterday, investors are taking profits and exiting the memory sector. Meanwhile, CPI and PPI data are prompting the market to reassess the logic behind bets on whether the Fed will raise rates.
I’m still bearish today, especially on $SNDK . First, expectations of rate hikes are rising. Second, Treasury yields are climbing. Memory stocks are under scrutiny, and there’s no positive catalyst. On top of that, it’s Thursday, so there’s unlikely to be an inflow of capital to fuel a short-term recovery. Overall, the market remains defensive.#SpotBitcoinETFsShed$261M