My view: This is not necessarily the beginning of a tech sell-off, but it could signal a healthier market rotation.
The Russell 2000's 1.01% gain against the Nasdaq's 1.38% decline suggests investors are becoming more selective rather than abandoning equities.
Next week, three developments matter.
First, AMD, Palantir and Arista must prove that AI spending translates into revenue growth, sustainable margins and stronger free cash flow.
Second, Friday's nonfarm payrolls report could reshape Treasury yield and interest-rate expectations.
Third, watch market breadth. If small caps, financials and industrials continue outperforming while the Nasdaq stabilizes, the rally could gain a stronger foundation.
My strategy: Stay selective, avoid chasing expensive AI stocks, and prioritize profitable businesses with improving cash flow. The next market leaders may emerge outside mega-cap technology.
@AI_FocusedTrader [ε]
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