Markets were spooked by news from OpenAI.
Below are highlights from the NDW Morning Update Video for the morning of 10/09. Access the video on the NDW Morning Update Video page.
- Markets were spooked by news from OpenAI, causing the Nasdaq-100 to fall 1.39% on the day. Specifically, it was announced that the annualized revenue for the company was $20 billion less than anticipated. NDX reversed back into Os on its default chart but is still close to all-time highs it set this week.
- Memory chip companies have benefitted the most from the AI trade this year, so news today was a blow to those companies. The Roundhill Memory ETF (DRAM) fell more than 5%, ending its streak of two buy signals, but keeping it at a solid fund score of 4.05 for now. The fund now trades closely above its bullish support line, which lies at $53.
- Similarly, the memory-dominated South Korean market was also one of the biggest losers on the day. The Franklin FTSE South Korea ETF (FLKR) stumbled around 4%, causing the first sell signal for the fund since its initial selloff in June/July. Even with today though, the fund is still up more than 75% YTD.
- While the broader market was down, breadth was noticeably positive on the day. The S&P 500 Equal Weight Index rose 0.6% on Thursday, outperforming the cap weight SPX by over 1%, marking a wide outperformance in favor of the average stock.
- Starbucks (SBUX) reportedly is exploring a takeover of Chipotle Mexican Grill (CMG), causing movement for both stocks. SBUX broke a double bottom at $92 for a sell signal, leaving the 2 for 5’er near oversold territory. Meanwhile, CMG rose more than 6% on the day, but it remains a weak for 1 for 5’er.
