The Nasdaq plunged 5.52% in a single day on Thursday, and chip stocks clawed back half of that on Friday.
Friday’s close: The Nasdaq rose 1.09% to 24,579, the S&P 500 gained 0.31%, and the Dow fell 0.46%. The leaders were among Thursday’s biggest losers: AMD surged 11.04% after dropping 17.3% the day before; Nvidia rose as much as 5.6% intraday and closed up 2.78%; Micron gained 5.12% after falling 17% the previous day; and Intel climbed nearly 7%. The Philadelphia Semiconductor Index rose 4.21%, after dropping more than 12% the day before.
But let’s look at the full picture: For the week, the Nasdaq was still down 3.4%, the S&P 500 fell 2.7%, and the Dow lost 0.9%. The Nasdaq closed lower for a fourth straight week. On Thursday, S&P 500 companies lost nearly $3 trillion in market value in a single day, and the Nasdaq fell more than 10% from its October 6 high, entering correction territory.
This whale sees it in three parts: First, Friday’s green candle was dip-buying, not a reversal signal. A stock that fell 17% and then bounced 11% is still down—that’s just arithmetic. Second, the real test comes next week: Can the Philly Semiconductor Index hold its ground, and can $NVDA stay above Friday’s high? If not, it was just a one-day bounce. Third, with volatility like $AMD ’s, any shift in the news over the weekend could change things. At Monday’s open, watch which way the gap goes. No need to take a position until the direction is clear. This whale will flick its tail and wait until Monday.
Friday’s close: The Nasdaq rose 1.09% to 24,579, the S&P 500 gained 0.31%, and the Dow fell 0.46%. The leaders were among Thursday’s biggest losers: AMD surged 11.04% after dropping 17.3% the day before; Nvidia rose as much as 5.6% intraday and closed up 2.78%; Micron gained 5.12% after falling 17% the previous day; and Intel climbed nearly 7%. The Philadelphia Semiconductor Index rose 4.21%, after dropping more than 12% the day before.
But let’s look at the full picture: For the week, the Nasdaq was still down 3.4%, the S&P 500 fell 2.7%, and the Dow lost 0.9%. The Nasdaq closed lower for a fourth straight week. On Thursday, S&P 500 companies lost nearly $3 trillion in market value in a single day, and the Nasdaq fell more than 10% from its October 6 high, entering correction territory.
This whale sees it in three parts: First, Friday’s green candle was dip-buying, not a reversal signal. A stock that fell 17% and then bounced 11% is still down—that’s just arithmetic. Second, the real test comes next week: Can the Philly Semiconductor Index hold its ground, and can $NVDA stay above Friday’s high? If not, it was just a one-day bounce. Third, with volatility like $AMD ’s, any shift in the news over the weekend could change things. At Monday’s open, watch which way the gap goes. No need to take a position until the direction is clear. This whale will flick its tail and wait until Monday.
