Market Musings 6/26/2024

Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!

The AI rally is starting to stall as investors become more cautious…

#AI bellwether Nvidia surged over 40% from its blowout earnings, but recently pulled back -15% from its all-time peak last Thursday before yesterday’s rally.

Overall, #AI hype has tapered off and replaced with some cautious selling.

Broadcom, another big #AI name, is also down -9% since Thursday.

While, Micron, a memory chip supplier for all these #AI servers being built, tumbled in after hours today after reporting.

For Micron, while earnings beat, the outlook came in just in-line with Street estimates. Given all the hype, investors were definitely looking for a beat.

We’ll likely see more #AI and the overall market pullback tomorrow.

Micron was the last big off-cycle #AI name reporting before earnings next month.

With markets still near all-time highs and a lack of news, we expect #AI to continue to cool off.

However, the macro outlook will take over focus for the rest of the week with the May PCE release on Friday.

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As of the publish date, Ursa portfolios may own NVDA, AVGO & MU. The stocks mentioned in this article may cease to be owned by Ursa portfolios at any point.

The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.

Original Photo by Pixabay.