1. Key News & Movements
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S&P 500 and Nasdaq closed lower as Big Tech's soaring AI budgets triggered a flight to safety, with investors concerned about escalating capex without clear ROI.
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Apple ( $Apple(AAPL)$ ) bucked the trend with 16% sales surge on "staggering" iPhone demand – China sales rebounded sharply.
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Microsoft ( $Microsoft(MSFT)$ ) slumped 10%, losing $357 billion in market cap – its worst single-day drop since 2020 – on AI spending worries.
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Musk's SpaceX in merger talks with xAI ahead of planned IPO, source says – potential valuation synergies.
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OpenAI plans fourth-quarter IPO in race to beat Anthropic to market – AI race intensifies.
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Sandisk ( $SanDisk Corp.(SNDK)$ ) jumped 14% on 2Q profit/revenue beat driven by AI demand.
Overall tone: Risk-off rotation from AI capex fears, but selective strength in Apple and Sandisk highlights demand divergence.
Stocks to Watch Today
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Microsoft (MSFT) – Post-earnings pressure; watch $410 support.
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Apple (AAPL) – Strong demand signal; watch $250 resistance.
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Sandisk (WDC) – AI memory surge; watch $80 breakout.
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Tesla ( $Tesla Motors(TSLA)$ ) – SpaceX/xAI merger buzz spillover.
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Nvidia ( $NVIDIA(NVDA)$ ) – AI spending concerns; watch $135 support.
2. Trading Opportunities
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Short-term: MSFT puts or short if $410 breaks – target $380 on capex fears.
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Long Apple calls or shares on $240 dips – strong demand tailwind.
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Sandisk breakout longs above $78 – AI demand catalyst.
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Pair trade: Long AAPL/short MSFT for sector rotation alpha.
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Volatility plays: VIX calls if AI panic escalates.
My Plans No aggressive positions today – holiday thin volumes amplify noise. I'll watch MSFT for short entry if $410 cracks, add Apple on dips for consumer strength, and stay sidelined on broader AI until PCE clarity. Annual goals are solid; focusing on risk management over new bets this week.
Market Movers Table
Key Takeaways
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AI capex fears dominate – rotate to consumer strength like AAPL.
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Sandisk's AI revenue beat shows selective demand.
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Thin holiday volumes = amplified moves.
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PCE Thursday critical for Fed cut path.
Safe trading – what's on your watchlist? 🎯🤑
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