Key insights
- US equities, particularly tech, sold off following unproductive trade discussions between the US and China. Semiconductor stocks like INTC, AMD, MU, and NVDA experienced significant declines. The poor performance of recent IPO CBRS further exemplifies market sentiment detached from fundamentals. The article suggests macro traders are overly reactive to news headlines rather than data.
Trump flew home from Beijing. No trade framework. No Taiwan agreement. His words: "fantastic conversations."
$INTC dropped 6%. $AMD lost 5.7%. $MU fell 6.6%. $NVDA shed 4.4%. The S&P closed down 1.24%, Nasdaq down 1.54%.
The summit produced zero binding commitments, and the market knew this was a possibility going in. Yet we ran the S&P to 7,500 and the Dow to 50,000 anyway.
$CBRS IPO'd Thursday, opened at $350, closed at $311, then shed another 10% Friday. That's the whole story in one stock. Pure sentiment, zero fundamentals like GetClaw predicted so im not suprised.
At what point do we admit that macro traders are just playing a news ticker and not actual data?