After last week's sharp semiconductor selloff, Monday looked suspiciously familiar—for the opposite reason.
Broadcom jumped after extending its chip partnership with Apple through 2031, semiconductor stocks rebounded more than 2%, and the Nasdaq climbed over 1% as money flowed back into the sector. |
The timing wasn’t random. |
Earnings season begins this week, and expectations remain enormous. Analysts expect technology profits to surge roughly 65% from a year ago, putting AI companies back under the microscope. |
The market spent two days questioning AI. |
Now it’s waiting to see if the earnings can answer those questions. |
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⚡ Closing Bell:
→ Dow Jones: ▲ +0.29% to 53,055.91 › Closed at another record high as investors looked ahead to earnings season and welcomed a rebound in AI sentiment.
→ S&P 500: ▲ +0.72% to 7,537.43 › Technology stocks lifted the benchmark as chipmakers bounced back after last week’s selloff.
→ Nasdaq: ▲ +1.12% to 26,121.16 › Broadcom’s expanded Apple partnership helped fuel a rally across semiconductor stocks.
→ Russell 2000: ▲ +0.45% to 3,009.54 › Small caps climbed back above the 3,000 mark as investors returned to risk assets beyond megacap tech. |
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Macro Moves:
→ 10-Year Treasury Yield: ▼ to 4.47% › Long-term yields edged lower as investors continued dialing back expectations for a near-term Fed rate hike after last week’s soft jobs report.
→ 2-Year Treasury Yield: ▼ to 4.12% › Short-term yields slipped as traders looked ahead to Wednesday’s Fed minutes for fresh clues on the interest-rate outlook.
→ Dollar Index (DXY): ► around 100.86 › The dollar steadied after last week’s payroll-driven decline as markets waited for the Fed’s next signal.
→ Bitcoin: ▲ over 1% › Crypto climbed alongside the rebound in AI and semiconductor stocks as investors embraced risk again. |
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Looking Ahead:
The warm-up is over...
Samsung, SpaceX, and the Fed all take center stage over the next two days as Wall Street searches for its next catalyst. |
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#TRUTH:
❗❗❗ ❝ We see things not as they are, but as we are. ❞
~ Anaïs Nin |
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While everyone was distracted with the recent SpaceX IPO… |
Elon Musk quietly filed a patent with the U.S. Patent and Trademark Office to protect what Jeff Brown believes will be his next breakthrough… |
Something he called "the greatest tech invention in history." |
Click here to see the details because Elon is predicting this new AI breakthrough will unleash a $1 quadrillion new wealth wave. |
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Good News Had No Buyers. |
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One of AI’s biggest winners is suddenly learning that beating expectations isn’t always enough. |
Micron has fallen 22% since reporting blockbuster earnings less than two weeks ago. Even more surprising, the stock is now trading below where it was before the report. |
The numbers weren’t the problem. |
Micron topped Wall Street’s estimates, raised its outlook, and continues to benefit from insatiable demand for AI memory chips. The company remains one of the biggest beneficiaries of the AI infrastructure boom, with memory becoming one of the industry’s biggest bottlenecks. |
So why the selloff? |
For some investors, the conversation has shifted from “How good are the results?” to “How much of that is already priced in?” |
22V Research warned that momentum stocks often become vulnerable once everyone agrees they’re the obvious winners. Add in questions surrounding Meta’s future AI infrastructure spending and reports that Apple may be looking for lower-cost memory suppliers, and investors suddenly found reasons to lock in profits. |
Not everyone sees it that way. |
Citi called the pullback a buying opportunity this week, adding Micron to its 90-day upside catalyst watch list and arguing memory prices still have room to climb. |
The company hasn’t changed much over the past two weeks. |
The market’s expectations have.
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The Assembly Line Is Moving North |
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Toyota is bringing part of its pickup truck production back to the United States. |
The automaker announced plans to invest $3.6 billion in a new Texas plant that will manufacture the Tacoma beginning in 2030, shifting some production from its Baja California facility in Mexico. The project will create roughly 2,000 jobs and expand Toyota’s manufacturing campus in San Antonio. |
The move comes as automakers continue adjusting to a very different trade environment. |
Increased tariffs on imported vehicles, steel, aluminum, and auto parts, are encouraging manufacturers to produce more vehicles inside the United States. |
Toyota isn’t abandoning Mexico. The company will continue building Tacoma trucks at its Guanajuato plant and reaffirmed its commitment to manufacturing across all three North American countries, while urging Washington to preserve the region’s integrated trade framework. |
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The AI Rumor Mill |
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When you’re the company powering the AI boom, even a rumor can become a headline. |
Nvidia pushed back Monday against reports that its next-generation Kyber AI server had been delayed until 2028, saying simply: “Our roadmap remains intact.” |
The report, published by SemiAnalysis, claimed manufacturing challenges could push back the launch of Nvidia’s next AI server platform. Nvidia quickly rejected the claim, reaffirming plans to introduce the Kyber server alongside its Vera Rubin Ultra platform in the second half of 2027. |
Why does it matter? |
Kyber is expected to double the number of GPUs inside each server—from 72 to 144—a significant leap for AI infrastructure as demand for computing power continues to climb. |
The timing is also notable. |
Investors have become increasingly sensitive to anything that could slow the AI buildout. Nvidia’s stock has gained more than 840% over the past five years, but competitors such as AMD, along with custom chips from Amazon and Google, are giving customers more alternatives than ever before. |
For now, Nvidia says nothing has changed. |
On Wall Street, sometimes denying the rumor becomes the news. |
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Gains & Pains: |
Gains:
➝ Broadcom: ▲ +3.73% › Extended its Apple partnership through 2031, helping lift AI and semiconductor stocks. |
➝ Apple: ▲ +1.31% › Investors welcomed the expanded custom-chip agreement with Broadcom. |
➝ DSC Holdings: ▲ +21.38% › Finished as one of the session’s biggest gainers. |
➝ ChipMOS Technologies: ▲ +13.45% › Chip stocks rebounded as optimism returned to the AI trade. |
➝ IREN: ▲ +13.11% › Investors rotated back into AI infrastructure names. |
➝ AXT: ▲ +12.19% › Semiconductor materials supplier climbed alongside the broader chip rally. |
➝ Quantinuum: ▲ +11.55% › Quantum computing stocks continued their recent momentum. |
😬 Pains:
➝ Solstice Advanced Materials: ▼ -15.14% › Ended the day as the market’s biggest decliner. |
➝ RegenCell Bioscience: ▼ -11.93% › Healthcare shares remained under pressure. |
➝ Advance Auto Parts: ▼ -8.45% › Auto-parts retailers weakened after fresh industry acquisition news. |
➝ UL Solutions: ▼ -7.96% › Investors took profits after the stock’s recent run. |
➝ Sphere Entertainment: ▼ -7.50% › Entertainment shares extended recent weakness. |
➝ Microsoft: ▼ ~1.0% › Announced roughly 4,800 layoffs as investors continued debating AI spending versus returns.
🔥 Most Active: |
➝ SpaceX: ▼ -0.98% › Heavy trading continued ahead of its Nasdaq-100 addition, with investors digesting one of the year’s biggest IPOs. |
➝ American Airlines: ▼ -0.95% › Airline stocks traded quietly as oil prices remained near pre-Iran war levels and investors awaited Delta’s earnings later this week. |
➝ Opendoor: ▲ +3.88% › Homebuying optimism returned as lower rate expectations continued supporting housing-related names. |
➝ AT&T: ► Flat › Little changed as investors rotated toward higher-growth technology stocks. |
➝ Nvidia: ▲ +0.37% › Shares edged higher as chipmakers rebounded ahead of what is expected to be a pivotal AI earnings season. |
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Escapes: |
Grand Staircase-Escalante National Monument📍 Utah 🇺🇸 |
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Commodities Check : ✔️ |
→ WTI Crude: ▼ $68.55/barrel › Held near pre-Iran war levels as OPEC+ increased production and shipping through the Strait of Hormuz continued to normalize. |
→ Brent Crude: ▼ $71.99/barrel › Settled near pre-war prices as recovering Gulf exports eased supply concerns. |
→ Gold: ▼ $4,163.64/oz › Pulled back from a two-week high as a firmer dollar offset easing Fed rate expectations. |
→ Silver: ▼ $62.17/oz › Slipped after touching its highest level since late June as traders locked in gains. |
→ Soybeans: ▲ $11.92¼/bushel › Jumped nearly 4% on Midwest weather concerns and renewed hopes for Chinese demand. |
→ Coffee: ▲ +16% › Arabica posted one of its biggest daily rallies on record as traders repriced the risk of a powerful El Niño disrupting global supplies.
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The stinger: |
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Disclaimer |
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills. |
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Disclaimer |
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills. |
This publication is for informational and educational purposes only. It does not constitute investment, trading, or financial advice and is not based on any individual’s financial circumstances, goals, or risk tolerance. We are not registered investment, stock, or commodity advisors. Always consult a licensed financial professional before making investment decisions. |
Information provided in this newsletter (and on any affiliated website) is obtained from sources believed to be reliable; however, accuracy and completeness cannot be guaranteed. Opinions expressed are those of the authors and are subject to change without notice. |
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