Tech— specifically, semiconductor— troubles started early in the week and never let up. The Nasdaq's 26,000 vault and falling oil prices couldn't assuage cautious investor sentiment. Micron (MU) earnings were but a temporary shot in the arm, only for the Nasdaq to pivot into the red. Markets started Friday off on a sour note after OpenAI revealed it may delay its IPO due to rising costs in AI infrastructure, but managed to pivot higher by midday. The Dow is the only index headed for a weekly win, however, with the Nasdaq eyeing its worst weekly drop since June 5.
Wendy's Ignites Renewed Meme Stock Buzz
Everyone needs a break from tech right? We’ve got you covered. Wendy’s (WEN) is buzzing amongst the WallStreetBets crowd, with retail traders driving the price up. The high beta rotation away from chips has Caterpillar (CAT) stock claiming and flashing a bullish signal to boot. Contrarian quantitative signals are also emerging for a high-profile casino stock, a slumping solar name, and ‘the next Chipotle,’ leaving plenty of ways to avoid the semiconductor red tape.
Behind the Tech Sector Volatility
Beyond the obvious storylines, there were some interesting developments within the tech sector. IBM (IBM) and Arm Holdings (ARM) bucked the broader tech selloff thanks to lofty bull notes. Qualcomm (QCOM) had to fight off acquisition buzz headwinds in addition to the sector rotation. Memory staple Western Digital (WDC) enjoyed a late-week halo lift from Micron, while internet of things software stock Samsara (IOT) tested a key trendline.
What to Expect July 4th Week
Looking ahead, Nike (NKE) earnings should provide some retail sector insight as Wall Street ushers in another holiday-shortened week. As summer heats up, check our seasonal stock picks progress report, and, as always, monitor your macro levels.
