Chuck Hughes Weekly Market Update
Market Rollercoaster: Tech Tumbles, Dow Soars, and All Eyes on the Fed
The week started strong in the markets, with a nice rally after hitting some key support levels.
The S&P 500 and NASDAQ bounced off their 50-day moving averages, but then things got a bit rocky—especially for big tech and those high-flying AI stocks. Thursday was rough, with the S&P dropping over 1.6%, and tech taking the biggest hit. Still, the overall long-term trend looks good, and the Dow even hit a new all-time high just the day before.
There’s been a lot of rotation—money moving out of the big winners and into other sectors like biotech, healthcare, and some financials. For example, Goldman Sachs (GS) has been on a roll, and a recent trade alert for a call option debit spread is up over 360% on paper. If you missed it, no worries—they’re sending out more alerts soon.
Looking ahead, everyone’s watching the Fed’s next move. The market was sure there’d be a rate cut, but now it’s a coin toss, which has added some pressure. Plus, Nvidia’s earnings are coming up, and there’s a lot of anxiety about how that’ll go, especially with AI stocks under the microscope. On the bright side, the government shutdown is over, so we’ll finally get some fresh economic data soon.