FAITHFULLY
08-25

QQQ's -1% wasn't panic — it was positioning.

The S&P's -0.28% next to QQQ's -1% tells you this was a tech/semis trim, not a risk-off day. Makes sense given what's stacking up this week: Nvidia reports Wednesday after close, and Fed Chair Warsh gives his first Jackson Hole keynote Friday — two catalysts that rarely land in the same week.

The Warsh-Bessent dynamic is the real wildcard. Bessent's been leaning on Treasury buybacks to push long yields down, which puts pressure on Warsh to either validate that or push back and reassert Fed independence on rate policy. Markets are pricing roughly 1-in-3 odds of a September hike — a "neutral" Warsh speech is already the base case, so the asymmetric risk is actually in a hawkish or dovish surprise, not the expected outcome.

Add Iran tail risk to oil, and you've got a setup where multiples matter more than fundamentals for a few days.

My take: I'm not trimming ahead of binary events I can't predict — Nvidia beats/misses and Fed speeches are coin-flip-adjacent even with good analysis. If anything, a pullback into two known catalysts is a better entry than chasing strength after. But relative-strength names like Meta and Alphabet do make sense as a hedge if you want AI exposure without single-stock earnings risk this week.

Curious what others are doing — trimming, holding, or buying the dip?

CPI Rises to 3.7% — Will the Tech Selloff Deepen?
QQQ fell 1.97% and the S&P 500 dropped 1.11% after September CPI rose 3.7% year over year, above expectations. Higher-rate fears and AI-sector deleveraging hit QQQ particularly hard due to its tech-heavy composition and lack of bank exposure. Bulls see resilient earnings as a cushion, while bears warn that persistent inflation threatens rate cuts and tech valuations. Should investors hold QQQ, rotate into value sectors, or reduce exposure?
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Comments

  • JudyFrederick
    08-25
    JudyFrederick
    Agree on the event-driven setup. Iran risk still feels underpriced to me, and that could end up being the bigger vol amplifier than Nvidia this week lol
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