📉 US100 dips 1.4%

A correction in the technology sector follows Home Depot’s solid results, which add to the debate on future interest rate cuts in the US. Futures on the Nasdaq 100 (US100) are leading the declines, while the US30 and US500 are holding up better thanks to their lower exposure to tech stocks. The semiconductor and software sectors are driving today’s losses.

Key moves:

• Nvidia (NVDA.US) shares are down more than 3%, with similar declines in Taiwan Semiconductor and Broadcom, the latter dropping nearly 4%. 

• Intel (INTC.US: +7%) is rallying after the U.S. government and Japan’s SoftBank announced plans to buy a combined 10% stake worth about $2 billion. 

• In software, Palantir (PLTR.US) shares are sliding almost 10%, while Oracle (ORCL.US) and Applovin (APP.US) are also under pressure. Palo Alto Networks (PANW.US: +4%) is a notable gainer after its earnings release.

Nasdaq 100 futures are down nearly 1.4% today, with RSI falling below 20, signaling oversold conditions. Selling volume has dominated for several hours. Source: xStation5

Sector volatility within the S&P 500. Source: Bloomberg Finance LP

Real estate developers and consumer staples are posting the biggest gains. Optimism in real estate is fueled by stronger-than-expected housing starts data and Treasury Secretary Scott Bessent’s comments that Fed rate cuts would primarily support the housing market. Meanwhile, Home Depot’s results added to the picture of solid revenue momentum among major retailers and their resilience to Trump’s tariffs. Although its revenue, sales, and earnings fell slightly short of expectations, the company maintained guidance despite uncertainties from tariffs and the potential end of the U.S.–China trade truce. This optimism could shift investor focus back toward defensive stocks, which have lagged due to unwavering faith in the tech sector. Gains are also being supported by expectations of rate cuts

Still, a combination of relatively solid U.S. macro data and lingering inflationary risks — confirmed by the latest PPI, University of Michigan survey, and now retailer earnings — may suggest the Fed will avoid easing policy too soon, even as Trump’s pressure on the central bank mounts.

The U.S. Commerce Department today added 407 more products to its aluminum and steel tariff list. Data show U.S. copper-related firms are raising prices, with Trump’s tariff threats having been significantly softened. Wire producers are benefitting from this “pricing power,” and other industries may follow.

PLTR.US (D1 interval)

Palantir shares are leading today’s declines among large-cap stocks, testing the 50-day EMA (orange line).

Source: xStation5