Next Day Prep: Tech Surge Sparks Semiconductor Rally
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. Today, the market experienced a mix of optimism and caution, resulting in a tale of two sessions.
Overnight Headlines
- The market opened with a surge of optimism driven by trade truce hints from Treasury Secretary Bessent.
- Tech sector, particularly chipmakers like ASML, showed strength, propelling the semiconductor space.
- Defense stocks faltered following concerns over potential stock buyback cuts for defense contractors.
Economic Announcements
The Fed’s Beige Book highlighted little changed economic activity, with investors mainly focused on earnings and trade developments amidst the ongoing government shutdown.
Earnings Highlights
- Financial sector saw mixed results with companies like Morgan Stanley and Bank of America posting strong beats, while PNC and Progressive faced losses.
Top Movers
- AMD surged over nine percent, driven by positive industry news.
- Small-cap biotech sector exhibited strong momentum with stocks like RXRX, ABSI, and IMNM showing promising setups.
Quick Trade Ideas
Focus on small-cap biotech for potential continuation trades. Watch for controlled pullbacks or clean breakouts for entry opportunities. Remember to manage risk with tight stops.
Key Takeaway
Traders should remain cautious amid market indecision, prioritize earnings-related moves, and seek opportunities in the small-cap biotech sector for actionable momentum while keeping risk management a priority.