Next Day Prep: Semiconductors Surge Amid Big-Tech Bloodbath
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. It is Wednesday afternoon, January 14th, 2026. Despite the sea of red on major indices, the underlying market sentiment isn’t as bearish as it may seem. Let’s delve into the details.
Overnight Headlines
- S&P 500 dropped 0.5%, and the Nasdaq fell 1% in what appeared to be a rotational shift rather than mass liquidation.
- Key mega-caps like NVIDIA, Microsoft, and Amazon led the downside push, while the equal-weighted S&P and Russell 2000 showed resilience, hinting at a nuanced market breadth.
Economic Announcements
- Concerns were spurred by the PPI report showing a rise to 3.0%, suggesting a delay in anticipated rate cuts, influencing the tech sector negatively.
- Geopolitical tensions, including issues with Iran and comments from President Trump, added to the risk-off sentiment in markets.
Earnings Highlights
- Wells Fargo missed revenue expectations, leading to a 4% decline, as the financial sector experienced a general ‘sell the news’ reaction despite some beats by Bank of America and Citigroup.
- Key earnings reports from Goldman Sachs, Morgan Stanley, and BlackRock set the stage for potential sector reversals on Thursday.
Top Movers
- Watch for potential opportunities in semiconductor stocks like NXP Semiconductors and Texas Instruments amid selective buying post-tech sell-off.
- Consider looking at Aerospace and Defense sectors with companies like TransDigm (T-D-G) and Rocket Lab (R-K-L-B) showing strength and potential breakout setups.
Quick Trade Ideas
- TG Therapeutics saw a strong performance on raised revenue guidance, while Lululemon faced challenges due to pending tariff rulings.
- Approach Tesla cautiously as an ‘Anticipation Setup,’ monitoring for stabilization before considering a potential bounce.
Key Takeaway
Stay vigilant on the 10-year Treasury yield and watch for cues from bank earnings to navigate potential market shifts. Focus on relative strength opportunities, avoid fighting rotations, and let price action guide your trades for the day ahead.
Thanks for tuning in to Next Day Prep. Good luck in your trades, stay alert to market movements, and adapt to the evolving conditions. Until next time!