The situation this week is pretty much the same as last week The technology sector and specifically the semi-conductors continued higher. NVDA reported earnings and guidance well beyond expectations. The hot sector is AI and NVDA is the so called “picks and shovels” of that business being the supplier of the hardware necessary for all other companies to use this technology. The “picks and shovels” is reference to the old gold rush days where very few miners struck it rich but the people selling the products needed for mining made out just fine.
On the flip side, inflation continues to run will above the 2% level the fed wants to see. The PCE price index came in a little higher than expected and the jobless claims were lower than expected showing the employment picture is still good for workers. After these latest economic numbers, a rate hike in June is starting to look more likely.
The debt ceiling drama continued to play out but it looks like a deal is likely and a lot of market participants are not too worried about it regardless.
Safety trade continues to be technology and anything related to AI.
What to Watch for this Week:
Sectors in Play Last Week:
Earnings this week:
Brian (Randy) Pezim is a Canadian trader and investor, with a focus on swing trading equities as well as day trading.