Any optimistic investors hoping Wall Street would eventually move past elevated oil prices were disappointed for yet another week. Hotter-than-expected inflation data and cautious rhetoric from Fed Chair Jerome Powell at the conclusion of the Federal Open Market Committee's (FOMC) two-day meeting did little to put traders at ease, with the central bank keeping interest rates steady and signaling just one rate cut in 2026.
As investors monitored Middle East tensions and developments around the Strait of Hormuz, the Cboe Volatility Index (VIX) remained elevated. With quadruple witching set to ramp up volatility on Friday, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) were all headed for a fourth-straight week of losses.
Big Tech as Prevalent Even as Oil Takes Spotlight
Big Tech made sure to generate headlines this week, even as traders remained focused on oil prices. Meta Platforms (META) linked up with Nebius (NBIS) amid massive layoff rumors. Meanwhile, (NVDA) held its vaunted GTC conference and attracted plenty of options buzz.
Palantir Technologies (PLTR) stock tested a key trendline that should entice bulls, and Micron Technology (MU) earnings were in focus. From a broader perspective, tech exchange-traded fund (ETF) Invesco QQQ Trust (QQQ) is flashing an intriguing quantitative signal.
Opportunity Abound For Contrarian Investors
Broad market weakness can bring plenty of opportunity for patient investors. It might be time to buy the dip on fiber optics stock Credo (CRDO). Less so chemicals giant Dow (DOW, which is running into a historically bearish trendline. Blue-chip tech stock Cisco Systems (CSCO) might be ready to make a move on the charts, however. And despite gold prices caving from profit taking, one gold mining stock may be worth taking a long-term flier on.
What's the Way Forward For Investors?
Implied volatilities are difficult to navigate right now, but Senior Quantitative Analyst Rocky White has the perfect study for such a scenario. Senior V.P. of Research Todd Salamone is also leery of this SPX trendline that could now be resistance. There is some key economic data to monitor next week, and don’t forget about our Market Madness going on over at Substack.
