To The Moon

Last night trading ended with a mixed performance, with major indices floating around the previous day close level. This could be due to investors awaiting the March Consumer Price Index release.

We saw a significant dip occurred in mid-morning, driven by a pullback in mega-cap stocks. A late afternoon rally helped the S&P 500 and Nasdaq Composite to close near their morning highs. But Dow Jones Industrial Average affected by $Boeing(BA)$ decline after reports of its lowest first-quarter deliveries since Q2 2021 and a Federal Aviation Administration investigation into the 787 Dreamliner came in, Dow end the day slightly lower.

Increase Selling Pressure On Several High-Performing Stocks

There is increased selling pressure seen on several high-performing stocks on 09 April trading, the significant are $NVIDIA Corp(NVDA)$ which saw a drop of 2.0%, despite a stellar year-to-date performance of 72.4%. $Meta Platforms, Inc.(META)$ which was up 46% till date also decline by 0.5%. $Eli Lilly(LLY)$ suffered a drop of 2.6% despite a 29.9% gain for 2024.

These stock movements suggest that they might be experiencing a market correction.

Overall Market Sentiment Remain Positive

Despite the mixed market performance, the overall sentiment remained positive. We could see majority of stocks ended the day higher, $Invesco S&P 500 Equal Weight ETF(RSP)$ giving a gain of 0.4% as compared to 0.1% gain by the S&P 500. Nine out of eleven S&P 500 sectors reported gains, varying from 0.1% to 1.3%.

Weak Demand For Note Auction Signal Potential Concerns

We saw the 10-year Treasury Note yield dropped by six basis points to 4.36%, and the 2-year note did not fare any better, also decreased by four basis points to 4.75%.

The $58 billion 3-year note auction attracted weak demand, signalling potential concerns among investors.

Shift To Safe-Haven Assets Seen

We saw crude oil prices fell to $85.27, while natural gas saw a minimal increase. Investors are making a shift towards safe-haven assets as Gold and silver prices rose

What To Look Out Today (10 April 2024)

$Intel(INTC)$ unveiled its new AI chip, Gaudi 3, at the Intel Vision 2024 conference, their aim is to compete with Nvidia's dominance in the AI market.

The Gaudi 3 accelerator, designed for enterprise generative AI, is touted to deliver superior performance and efficiency at a significantly lower cost than Nvidia's H100. Intel's move could reshape the competitive landscape in the AI chip market, with major implications for tech and AI-driven industries.

I think we can watch Intel stock and see how investors sentiment interest might return.

Financial stocks experienced a downturn with key earnings reports from major banks such as JPMorgan, Wells Fargo, and Citigroup. Investors might be waiting for news prior to earnings and remain cautious, and with today (10 Apr) Consumer Price Index (CPI) report coming which might give us a clue of how the monetary policy decisions might looked like.

Summary

I would think it is better to stay cautious and see how the CPI played out as that could give some clue on how Fed planned for the monetary policy decisions. There have been so much news on rate cut this year and when.

I believe we need to look beyond that and look at how Fed would want to position its monetary policy decisions, I would not ruled out that Fed might do a rate increase if Fed deemed fit.

Appreciate if you could share your thoughts in the comment section whether you think financial sector would experience another correction once CPI is out, will mega stocks recover?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.