Chips and AI infrastructure are bouncing pre-market — but the move is uneven, and software looks soft. Why patience beats chasing the open.
The chips and AI infrastructure spaces are trading higher this morning, boosted by a large new contract at IREN and by the general torrent of selling that has pared gains over the past month. The question traders face today: Is it time to get back in the water?
The bounce is not evenly distributed across all sectors, as there's a touch of pre-market red in the consumer space (PG, WMT, CL all fractionally lower). Not all of tech is participating, either, as software looks a bit, well, soft. CRM, MSFT, and ORCL hint at a possible fade from the higher open forecast by this morning's futures market.
Experienced traders will wait for confirmation of overall sentiment, which will likely develop about an hour after the open. The past month's selling has created plenty of overhead space for a rally, so there's no need to rush. Watch the Kapnotes board for morning updates as they develop.
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