The Real Reason Behind the AI/Tech Selloff
What’s in Today’s Report:
- The Real Reason Behind the AI/Tech Selloff
- Composite PMI Takeaways – A Goldilocks Print
- How Silver and Copper Prices Suggest the AI Angst Is “Real”
Futures are modestly higher this morning as tech shares show signs of stabilizing (Nasdaq futures up ~0.5%) ahead of notable semiconductor earnings from MU due out this afternoon while oil prices continue to favorably decline.
Economically, the German Ifo Survey’s Business Climate headline rose 0.6 points to 85.6 vs. (E) 85.5 helping ease economic worries triggered by yesterday’s Eurozone PMI release.
Today, there are no Fed officials scheduled to speak and just one economic report to watch in the U.S. with New Home Sales (E: 640K) due out shortly after the open.
The Treasury will hold a 4-Month Bill auction at 11:30 a.m. ET and a 5-Yr Note auction at 1:00 p.m. ET; if demand for either is weak, yields could turn higher again which could act as a renewed headwind on equity markets.
Finally, there are a few noteworthy earnings releases today with PAYX ($1.31), JEF ($1.09) and most importantly MU ($20.81) all due to report quarterly earnings. Given the recent volatility has been concentrated in tech/semis, the market will be looking for strong results and guidance from MU after the close today to help the market continue to stabilize.