Tech got absolutely destroyed last week.
NASDAQ down 4.6%. NVIDIA and Alphabet each shed over 8%. Apple, Amazon, Meta — all down 4%+. SpaceX dropped 17%. The AI trade that's been holding this market together for months got its face ripped off.
Then Sunday night, the U.S. and Iran agreed to pause hostilities in the Strait of Hormuz. Commercial vessels can move freely again. Oil's up slightly, but nothing dramatic.
And suddenly futures are green. Tech's leading the bounce. Arm up 1.9%, Marvell up 1.6%, Intel up 1.1%. SpaceX up 2% after getting fast-tracked onto the Nasdaq 100.
Cool. But here's the question: is this a real reversal, or is the market just using a convenient headline to unload more shares into strength?
Last week was all about rotations keeping the structure from collapsing. Healthcare, financials, retail — all ripped while big tech bled. The advance/decline line stayed positive even as we hugged the lower edge of the expected move.
Don's going live at 9:20 AM ET to break down whether this bounce has legs — or if it's just another head-fake before the next leg lower.
— TheoTrade