MarketSurge powers the charts in this video.
The indexes continue to look for direction, but the same trends persist under the surface:
Software remains a minefield. I don’t know how capable the so-called vibe coding really is in the long term, but any news release on the subject is tanking various parts of the software space. Cybersecurity stocks were hit hard on Friday after Antropic revealed Cloude Code Security. The market is in a “shoot first, ask questions later” mode. Even if those AI threats prove unsubstantiated and software companies continue to grow their earnings, the process of multiples reduction is likely to keep the pressure on their stocks.
In the meantime, semiconductors and any AI infrastructure stock remain notably strong – GLW, AAOI, LITE, TSM, ASML, CIEN, SNDK, MU, JBL, COHR, LRCX, MOD, VRT, etc. NVDA reports earnings on Feb 25th after the market close. The stock is essentially flat since August of last year, while the semiconductors ETF, SMH, is up about 40% since then.
The Supreme Court said Trump’s tariffs are unlawful. There was a quick spike in retailer stocks on Friday that quickly faded. The market will need some time to fully digest that information. A couple of things that stood out on Friday were the relative strength of Big Tech vs small caps and the continued ascent of the South Korea ETF. EWY is now up more than 40% year to date.
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