Market News

What Just Happened?

The market took another hit today, with the Nasdaq down 1.8% and the S&P 500 slipping 0.9% as traders reacted to a mix of weak consumer confidence, earnings disappointments, and geopolitical concerns.

The biggest trigger? The Conference Board's Consumer Confidence Index dropped to 98.3, its lowest level in four years, sparking fears of a slowdown in consumer spending. Meanwhile, the Biden administration’s proposed restrictions on semiconductor sales to China sent chip stocks tumbling, led by Nvidia ($127.95, -1.79%) and AMD ($105.55, -2.37%).

Traders’ Immediate Reaction

 

• Tech stocks saw heavy selling pressure, with Tesla ($303.71, -8.11%) as concerns over EV demand and pricing pressure escalated.

• Sempra ($69.93, -19.79%) after an earnings miss and lowered 2025 profit outlook sent its stock sliding.

• Walmart ($97.00, +3.56%) showing resilience amid volatility signaled that shoppers are pulling back on discretionary spending, adding to economic jitters.

• Bond yields declined, reflecting a shift to safer assets as investors brace for more volatility.

Where’s the Opportunity?

 

• Tech Support Levels: Nasdaq is approaching key technical levels. If support holds, a bounce could offer short-term buying opportunities in oversold tech names.

• Consumer Defensive Plays: Stocks like Walmart and Costco could see inflows if investors rotate into defensive names.

• Options Activity: Increased put volume on TSLA and NVDA suggests traders are hedging or betting on further downside.

Tactical Moves: How to Trade This Setup

 

• For Swing Traders: Watch for support levels on Tesla ($303.71, -8.11%) and Nvidia ($127.95, -1.79%). A confirmed bounce could present a short-term rally play.

• For Defensive Investors: Consider Walmart or Costco calls if consumer sentiment continues to weaken.

• For Volatility Traders: Elevated IV on tech stocks makes selling premium via put credit spreads an attractive strategy.

The Trader’s Take

This is a pivotal moment—tech could either find support and bounce, or we could see a deeper correction if confidence keeps eroding. Swing traders should watch key support levels, while defensive investors may rotate into consumer staples. The next major catalyst? Nvidia’s earnings—if they miss, expect more downside. Stay nimble, and don’t force trades until the market shows its hand.