To The Moon

U.S. markets saw selling pressure in tech overnight, with the Nasdaq plunging 1.46% to close at 21,314 and the S&P 500 sliding 0.59% to 6,411. The Dow briefly touched a record high but couldn’t hold the gains, ending just 10 points higher at 44,922.

AI giants bore the brunt of the sell-off, dragging market sentiment into a more cautious stance: $Advanced Micro Devices(AMD)$   tumbled 5.4%, $NVIDIA(NVDA)$   fell 3.5%, and $Palantir Technologies Inc.(PLTR)$   sank 9% on hopes of a Russia–Ukraine ceasefire. Given the strong run-up in AI-related names since April, a pullback seems like a healthy consolidation. 

Rotation across sectors was clear. While tech stocks broadly declined, real estate, utilities, consumer staples, and healthcare outperformed as investors sought defensive havens. Home Depot’s $Home Depot(HD)$  earnings slightly missed expectations, but same-store sales growth lifted its stock 3%, helping push the Dow to intraday highs. Next up: earnings from Target and Walmart, which will offer clues about U.S. consumer demand under Trump’s tariff policies.

$Intel(INTC)$   remained in the spotlight after SoftBank announced a $2B investment, sending shares up 7%. Reports also suggest the Trump administration may convert $10.9B in CHIPS Act subsidies into direct equity stakes. While these are strong tailwinds, Intel’s deeper challenge lies in its accumulated technology gap. Despite the funding, it may struggle to close the distance with TSMC and Nvidia, especially with its 18A process now delayed until 2026.

Meanwhile, the Trump administration recently struck a deal with Nvidia allowing partial chip sales to China, in exchange for a 15% revenue levy (down from the initial 20% Trump proposed). There are now reports that Nvidia is developing a new China-specific AI chip, the B30A, based on the Blackwell architecture, offering better performance than the current H20. Even so, Nvidia’s stock fell 3.5% despite the potential upside

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