Will the Fed bring cheers to the market next week?

As the clock ticks down on the upcoming FOMC review next week, the market is increasingly pricing in an eventual end to the monetary tightening cycle to rein in a sticky inflation not seen in decades. High borrowing costs have been weighing on high-growth stocks and depressed their valuations, as their incoming cash flows tend to be more distant. Hence, a halt to the rate hikes would bode well for stocks on high growth projectiles, and they may finally heave a sigh of relief.

$Coinbase Global, Inc.(COIN)$ has been a stellar performer with a threefold boost in its share price year to date, amidst speculations of an eventual approval by the US Securities and Exchange Commission of an inaugural spot price-based bitcoin ETF. I believe that COIN will be among the major beneficiaries on the back of renewed frenzies over cryptocurrencies.

Semiconductor industry $Semiconductor Bull 3X Shares(SOXL)$ also appears to be recovering from the earlier market slump, as the growing prevalence of artificial intelligence applications and corresponding explosive demands for more sophisticated semiconductor chips to drive the AI engines are slated to propel the next phase of growth of the semiconductor market.

$Palantir Technologies Inc.(PLTR)$ fell almost 10% last week on news that the US military may scale back the quantum of its contract renewal with Palantir to diversify away its reliance on Palantir and over concerns on data ownership, as the latter employs its data collection to train its AI models. The potentially smaller deal may serve a blow to Palantir whose revenue is mostly derived from the defense industry that deploys Palantir's data analytics solutions for intelligence-gathering, counter-terrorism and military operations. Nevertheless, with Palantir building additional sources of revenue from other industries and growing demands for AI solutions, I would look beyond Palantir's near-term turbulence, as I remain optimistic of its long-term prospects.

Likewise, $C3.ai, Inc.(AI)$ had fallen close to 8% last week after reporting an underwhelming set of earnings results that has failed to impress the market. Despite the earnings miss, its quarterly revenue has actually improved on the back of the prevailing AI hype. I feel that the setback will be temporary and the dip offers an interesting entry opportunity before C3's investments on AI yields higher returns.

With the festive season round the corner and blockbuster releases along the way, I believe that $AMC Entertainment(AMC)$ should see larger crowds in its cinemas. With the significant overhang from its reverse stock split and stock dilution behind AMC, hopefully AMC will produce a turnaround story for itself, as the largest theatre chain in the US introduces corporate measures to stay relevant post pandemic and draw viewers back to its big screens.

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