Chips are strong in today’s pre-market, but the cause is not clear. Intel did make a production announcement, and there is some analyst commentary in the AI infrastructure space.
Chips are strong in today’s pre-market, but the cause is not clear. Intel did make a production announcement, and there is some analyst commentary in the AI infrastructure space. But there’s nothing that obviously accounts for this morning’s moves in INTC, CRWV, ON, AEHR, and others. Experienced traders will suspect that some small catalysts (which may become more apparent later in today’s trade) have wrong-footed traders who went home short yesterday. The opening hour will reveal a lot about the viability of the premarket indications. Lingering softness in software names (MSFT, CRM, DDOG, PLTR) could bound gains in the broader market indices, so investor sentiment may remain muted.
We are heading into the heart of earnings season, so the recent tech selloff does set-up well for outsized bounces on the heels of upside earnings surprises. Traders should be careful to check their earnings calendars before setting overnight positions, so as not to be run over in their shorts.
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