Good Monday evening MacroEdge Readers and Community,
Today we saw a sharp correction in particular semiconductor stocks - notably the MAG7 ‘high flyer’ Nvidia - which fell nearly 20% at the low of the day, while other stocks fared considerably better.
While the 5-minute Colombian trade war added some excitement to the mix, the primary sell was due to the innovations of a Chinese Quantitative Hedge Fund and its open-sourced ‘DeepSeek’ AI platform. The platform drove huge concerns around AI Capex in the United States and demand for Semiconductor products, as it was shown to be a considerably lower-cost alternative to current US platforms and infrastructure.
Remaining ‘macro’ level events this week:
> Mag7 Earnings: Apple, Microsoft, Tesla, Meta
> Semiconductor Earnings: ASML
> Durable Goods Orders
> FOMC Rate Decision and Meeting
> GDP-Adv
> Claims
> PCE Inflation Measures
Concentration Risk
