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Briefing.com Summary:
*CoreWeave disappointed with its guidance, and Softbank sold its entire stake in NVIDIA.
*AMD is holding a closely watched Investor Day today.
*The Treasury market is closed today in observance of Veterans Day.
The focal point of buy-the-dip efforts yesterday was unmistakable. Buyers had their sights set on the mega-cap stocks and many of the growth stocks, like Palantir Technologies (PLTR), that fell by the wayside in last week's trading action.
The result was a tidy 2.5% gain for the Vanguard Mega-Cap Growth ETF (MGK), a 2.3% gain for the Nasdaq Composite, a 2.1% gain for the Russell 3000 Growth Index, and a 1.5% gain for the market cap-weighted S&P 500. The equal-weighted S&P 500 fared well but was at the back of the pack with a 0.6% gain.
This morning, the pack is off to a sluggish start. The S&P 500 futures are down 15 points and are trading 0.2% below fair value, the Nasdaq 100 futures are down 115 points and are trading 0.4% below fair value, and the Dow Jones Industrial Average futures are up 27 points and are trading fractionally above fair value.
The go-to explanation is that there is some consternation surrounding the AI trade after CoreWeave (CRWV) disappointed with its FY25 revenue guidance and Softbank (SFTBY) sold its entire stake in NVIDIA (NVDA) for $5.8 billion as it aims to deploy capital in other AI opportunities, namely OpenAI.
Separately, Advanced Micro Devices (AMD) is holding an Investor Day today, where it is expected to discuss its AI roadmap and long-term targets.
Shares of NVDA are down 1.8% in pre-market trading, which is the main drag on the Nasdaq 100 futures. Shares of CRWV are down 8.3%. We can imagine that those indications are energizing the salivary glands of buy-the-dip players. A turn in NVIDIA in particular would go a long way toward improving the overall tone, but as it stands now, NVIDIA's turn lower is acting as a pressure point.
Some pressure is off the Senate (but not necessarily all senators) after it passed a bill to fund the government through January 30. That bill will now head back to the House, which is expected to hold a vote on Wednesday. Passage there would put the bill on the president's desk and end the longest U.S. government shutdown in history.
That won't immediately rectify the flight delays/cancellations at many airports across the country, but it is a crucial first step toward that end. It is also a crucial step toward opening the spigot of economic data that the Fed, economists, and market participants are anxiously awaiting.
As a reminder, the Treasury market is closed today in observance of Veterans Day, which is rightfully a day of national gratitude for all the men and women who have served in the U.S. armed forces. Briefing.com joins all in thanking them for their commitment to defending our country and protecting our freedom.
