It’s a tough time of year to try and make sense of market moves but I suspect we’re seeing profit taking and position squaring into year end. Some of the high-flying power-generation stocks are getting beaten up today and Oracle continues to crater. We also saw Tesla hitting all-time highs this week, which I suspect was at least partially due to short covering.
Nvidia, Google and Broadcom are all among the worst performers in the S&P 500 as well.
The S&P 500 is down 0.5% while the Nasdaq is down 0.8% in another sign of where the selling is coming from.
In terms of the short-covering angle, some of the best performers are Moderna, Service Now and Chipotle, all laggards this year.
So overall, I wouldn’t try to put any kind of macro or bigger stock market theme into the price action. I do suspect there is some real angst about AI and that could lead to some heavier tech selling at the turn of the year
