The warning lights came on. |
Turns out, nobody felt like pulling over. |
Oil jumped 5%.
Treasury yields climbed.
Nvidia fell nearly 3%. |
And with CPI arriving Wednesday, investors suddenly had plenty to worry about. |
Meanwhile, the S&P 500 fell just 0.06%. |
Wall Street saw the problems. It just didn’t see a reason to panic. |
Concerned enough to watch. Not concerned enough to sell. |
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⚡ Closing Bell:
→ Dow Jones: ▼ 0.11% to 53,975.98 › The Dow barely moved as investors balanced strong earnings against a 5% jump in oil and another round of inflation worries.
→ S&P 500: ▼ 0.06% to 7,753.11 › Friday’s record was followed by an almost ceremonial retreat. Energy surged 4.6%, but weakness in technology kept the index just below the flatline.
→ Nasdaq: ▼ 0.32% to 26,605.36 › Tech took most of the damage as Nvidia fell 2.9% and Intel dropped 4.1% after announcing plans for a $15 billion share sale.
→ Russell 2000: ▼ 0.56% to 3,017.40 › Small caps joined the retreat, but the bigger picture barely changed: the Russell remains the best-performing major U.S. index this year, up 21.6%.
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Macro Moves:
→ 10-Year Treasury: ▲ 4.70% › Yields climbed roughly 4 bps as investors braced for Wednesday’s CPI report and $125 billion of Treasury issuance this week.
→ 2-Year Treasury: ▲ 4.24% › The policy-sensitive yield moved higher, even after Friday’s weak jobs report cooled expectations for an immediate Fed hike.
→ U.S. Dollar Index: ▲ 0.17% to 99.81 › The dollar regained a little ground as yields rose and investors waited for inflation to settle the Fed debate.
→ VIX: ▲ 3.76% to 15.46 › Fear technically rose—but 15.46 is hardly panic territory. Wall Street was nervous enough to hedge, not nervous enough to hide.
→ Bitcoin: ▼ ~1.7% to ~$64,000 › Crypto was one of the clearer risk-off pockets as investors trimmed exposure ahead of inflation data. The late-session reading was around $64,051. |
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❗❗❗ Looking Ahead:
→ Wednesday — CPI: The main event. Economists expect headline inflation to cool slightly to 3.4% YoY, while core CPI is forecast at 2.5%. After Friday’s weak jobs report, a hotter surprise could put a September Fed hike right back on the table. |
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Google's DeepMind CEO says AI will be "10X bigger than the Industrial Revolution. And maybe 10X faster." |
Best-selling financial author Alexander Green has identified three companies positioned to soar. |
He was right about Apple. In 1996. Under $1 a share. |
He was right about Netflix. At $1.62. |
He was right about Amazon. Under $2. |
He warned his readers about the dot-com crash. One month before it peaked. |
He warned about the housing crisis. Nine months before Lehman Brothers collapsed. |
Now Alexander Green says the biggest wealth-creation event of his 40-year career is unfolding right now. |
He calls it Phase 2 of the AI Supercycle. |
And he's identified three stocks he believes could dominate the next phase. |
CLICK HERE TO FIND OUT IF HE'S RIGHT
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#TRUTH: ❗❗❗ ❝ We suffer more often in imagination than in reality. ❞ ~ Seneca |
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Retail Sold. |
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For 59 days, retail investors had one response to every SpaceX selloff: buy more. |
That streak is over. |
Individual investors became net sellers of SpaceX for the first time since its June 12 IPO, unloading a net $4.5 million of shares on Friday, according to Vanda Research. That’s after retail traders kept buying even as the stock was cut roughly in half from its $225.64 June peak. |
The timing is interesting. Just as retail finally stopped buying the dip, the dip started disappearing. SpaceX climbed another 4.23% Monday to $138.74, reclaiming its $135 IPO price for the first time since July 15. |
That matters because retail has been unusually important to this IPO. SpaceX allocated 20% of its offering to individual investors, versus the more typical 5%–10%, after reportedly attracting more than $70 billion in retail orders. |
What This Means → Retail spent nearly two months buying SpaceX on the way down. The first time they became sellers, the stock climbed back above its IPO price. Wall Street does have a sense of humor.
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Whatever It Takes Has a Limit |
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The U.S. and Japan stepped in together to rescue the yen for the first time since 1998. |
It worked. Briefly. |
After the July 31 intervention pushed the yen toward 155 per dollar, the currency slid as much as 1% Monday, moving back above 159 and erasing roughly half of those gains. Treasury Secretary Scott Bessent has promised to do “whatever it takes” to support Japan—but markets are starting to test exactly what whatever means. |
The Treasury’s main intervention fund holds less than $220 billion. For perspective, Japan is estimated to have spent roughly $53 billion in a single day just before the coordinated intervention. Meanwhile, the forces pushing the yen lower haven’t disappeared: U.S. rates remain well above Japan’s, oil is climbing again, and concerns over Japan’s fiscal outlook persist. |
Now 160 yen per dollar is becoming the number to watch. A sustained move above it could force Washington and Tokyo to decide whether they’re willing to step in again. |
What This Means → Governments can move currencies. Fundamentals decide whether they stay moved. The first intervention bought Japan some breathing room. The market is already asking how much the second one costs. |
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Bitcoin Miner, Meet AI |
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Riot Platforms spent years building infrastructure to mine Bitcoin. |
Anthropic just found another use for it. |
The Claude maker has reportedly struck a $9.1 billion, 20-year deal with Riot for 191 megawatts of computing capacity at its Rockdale, Texas, campus — enough power for roughly 143,000 homes at any given moment. With two optional five-year extensions, the contract could eventually generate as much as $16.1 billion for Riot. |
The pivot is getting serious. Riot is one of several crypto miners repurposing their enormous power footprints for AI, and Anthropic has been particularly hungry for capacity: it recently agreed to a $10 billion deal with Volta Infra and nearly $45 billion of computing from xAI. |
Investors noticed. Riot shares jumped roughly 25% after hours when Anthropic was identified as the customer. |
What This Means → The AI boom has created an unlikely second act for Bitcoin miners. Turns out the most valuable thing they were sitting on may not have been the Bitcoin — it was the electricity. |
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Gains & Pains: |
Gains:
→ AbCellera Biologics (ABCL): ▲ 34.78% › Shares exploded higher after positive Phase 2 data showed its experimental ABCL635 treatment significantly reduced hot flashes, giving investors fresh optimism around the biotech’s pipeline.
→ Obsidian Therapeutics (OBX): ▲ 27.27% › The biotech name surged to $35.00, making it one of Monday’s biggest percentage gainers.
→ National Energy Services Reunited (NESR): ▲ 23.33% › The oilfield-services stock jumped as crude rallied roughly 5% and energy became the S&P 500’s strongest sector of the day.
→ Fastly (FSLY): ▲ 20.86% › Shares extended their post-earnings momentum after Fastly recently reported record Q2 revenue of $183.3 million, up 23% YoY, alongside record gross margins.
→ Bending Spoons (BSP): ▲ 15.70% › Shares climbed to $51.43, putting the stock among Monday’s strongest performers.
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😬 Pains:
→ Bitdeer Technologies (BTDR): ▼ 20.08% › Shares plunged following Q2 results as the Bitcoin miner and AI-infrastructure company reported a slightly wider-than-expected loss, despite revenue climbing 47% year over year.
→ AXT (AXTI): ▼ 16.67% › The semiconductor-materials stock suffered a sharp reversal, closing at $73.81 after its recent run higher.
→ Coherent (COHR): ▼ 14.24% › Investors took profits ahead of earnings after the AI-optics stock had surged roughly 44% in the previous week and more than doubled this year.
→ Silicon Motion (SIMO): ▼ 9.96% › The semiconductor name sank to $230.61 during a rough session for chip stocks.
→ Nayax (NYAX): ▼ 9.95% › Shares dropped to $62.00, placing the payments-technology company among Monday’s biggest decliners.
Most Active🔥:
→ SpaceX (SPCX): ▲ 4.23% › Shares extended Friday’s huge rebound, closing at $138.74 as momentum continued after the first—and largest—post-IPO share unlock cleared without the selling investors had feared.
→ Archer Aviation (ACHR): ▲ 11.99% › Shares surged after Boeing agreed to sell Wisk Aero, Insitu and SkyGrid to Archer in exchange for a 19.75% stake, creating a broader autonomous aviation platform.
→ Plug Power (PLUG): ▼ 3.21% › Shares slipped despite Q2 revenue of $178.3 million beating estimates, with unusually heavy trading volume of roughly 124 million shares.
→ Nvidia (NVDA): ▼ 2.86% › The AI leader fell as chip stocks came under pressure, even as reports emerged that financial firms were working with Nvidia on a potential $500 billion AI-infrastructure financing package.
→ Intel (INTC): ▼ 4.06% › Shares dropped after the chipmaker announced plans to raise $15 billion through a share sale, adding fresh dilution concerns after its recent rally. |
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Escapes: |
Everglades 📍 FL 🇺🇸 |
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Commodities Check : ✔️ |
→ WTI Crude: ▲ 5.05% to $82.13/barrel › Oil surged as hopes faded for a quick agreement to reopen the Strait of Hormuz, putting inflation worries right back on Wall Street’s radar.
→ Brent Crude: ▲ 4.99% to $87.72/barrel › The global benchmark rallied more than $4 as the U.S. and Iran exchanged new demands over a potential Hormuz deal.
→ Gold: ▲ ~1% to $4,390.29/oz › Bullion hit a nine-week high as investors added safe-haven exposure ahead of Wednesday’s CPI report. U.S. gold futures settled 0.5% higher at $4,419.70.
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The stinger: |
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Disclaimer: |
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills. |
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