To The Moon

The stock market experienced some selling pressure today, although the index-level performance did not reflect this. Major U.S. equities indexes pushed higher after President Trump introduced a joint venture that will pump significant investments into artificial intelligence (AI) infrastructure and as investors digested a spate of strong earnings results.

After touching a record intraday high above 6,100.81, the S&P 500 finished the session with a gain of 0.61%, ending just below its all-time closing high. This rise was driven by mega caps and chipmakers. The Vanguard Mega Cap Growth ETF (MGK) closed 1.7% higher, while the PHLX Semiconductor Index (SOX) also gained 1.7%, fueled by excitement surrounding AI initiatives.

The Dow ticked 0.3% higher, while strength in the tech sector helped the Nasdaq climb 1.28%. Despite the gains in major indices, market internals told a different story. On both the NYSE and Nasdaq, decliners outnumbered advancers.

The equal-weighted S&P 500 closed 0.4% lower. Additionally, the Russell 2000 and S&P Mid Cap 400 both ended the day in negative territory, down 0.6% and 0.4% respectively. This more subdued performance comes after a period of notable outperformance earlier in the year. Despite today's downturn, the Russell 2000 and S&P Mid Cap 400 are still up 3.3% and 5.1% respectively in 2025.

My position on semiconductor chip stocks are paying off with long term holding and adding when price is right. I would think there would be more positive movement coming from the semiconductor sectors.

What Does Economic Data Say, To Expect On Thursday?

We have the Weekly MBA Mortgage Applications Index come in much lower at 0.1% than the previous reported at 33.3%. We also saw the December Leading Indicators came in at -0.1% lower than consensus of 0.0% where previous was revised to 0.4% from 0.3%.

We are expecting the Weekly Initial Claims, Weekly natural gas inventories and Weekly crude oil inventories on Thursday (23 Jan).

S&P 500 Technology Sector Lead With 2.49%

We have only two S&P 500 sectors in the green with information technology and communication services gaining 2.49% and 1.14%. The technology sector was powered by shares of $Seagate Technology PLC(STX)$ which added 6.8% following a strong earnings report. Analysts at Morgan Stanley affirmed the upbeat trends in the hard-disk drive sector, including Seagate stock among their top picks and indicating that consensus forecasts could be underestimating the company's gross margin trajectory.

Netflix (NFLX)was a standout performer, surging 9.7% after reporting the largest quarter of global streaming paid net additions in its history. notching the top performance in the S&P 500 on Wednesday. Netflix also reported it had added 19 million new subscribers during the period, boosted its share repurchase program by $15 billion, and increased its 2025 revenue outlook. Analysts at JPMorgan said they expect minimal resistance to subscription price hikes announced by Netflix, pointing to the strong slate of programming on the platform this year.

Blue-chip companies, including Procter & Gamble (PG) and Travelers (TRV), also stood out by reporting strong earnings, which bolstered investor confidence.

Note Yield Rose Due To Strong Demand Of the $13 billion 20-year bond Reopening

The 10-year yield increased by three basis points to 4.60%, and the 2-year yield rose by two basis points to 4.30%. Treasuries moved to session lows following the $13 billion 20-year bond reopening, which attracted strong demand.

Stocks To Watch

$Netflix(NFLX)$ saw its stock jump to a record high, closing up 9.7% after the company reported a significant increase in subscribers, driven by its new focus on live sports events. This surge helped lift tech stocks overall, contributing to a positive day on Wall Street.

CRISPR Therapeutics (CRSP) experienced a notable share price increase of 10% following the disclosure of investments by Robert F. Kennedy Jr., President Trump's nominee for HHS Secretary. Kennedy's holdings in CRISPR and other tech stocks like Apple (AAPL) and Amazon (AMZN)were revealed, with plans to divest within 90 days of confirmation.

Amid enthusiasm for President Trump's AI initiative, Project Stargate, tech executives voiced concerns about its execution. $Alphabet(GOOGL)$ announced a $1 billion investment in Anthropic, a competitor to OpenAI. Meanwhile, $NVIDIA(NVDA)$ and $ARM Holdings(ARM)$ were named key partners, boosting their stock prices as the AI infrastructure plan gains momentum.

This would mean that the key partners would be gaining the benefit from this joint venture. If we looked at GOOGL, it looked like GOOGL is forming a bullish MACD crossover with an upside move from its MA, and MTF is also giving a strong upward trend.

Amazon (AMZN) announced the closure of seven facilities in Quebec, resulting in job cuts. The decision, attributed to operational reviews and a shift back to third-party delivery models, affects its only unionized workforce in Canada, though Amazon denies the closures are related to unionization.

Financial sector stocks showed volatility as major banks like Citigroup (C) and JPMorgan Chase (JPM) continued to gain from positive earnings reports and expectations of business-friendly regulations under the new Trump administration.

Moderna (MRNA) gained attention as Oracle's chairman highlighted AI's potential in developing mRNA-based cancer vaccines. This aligns with the broader AI-driven initiatives announced under Project Stargate, indicating a significant investment wave in AI technology.

Summary

We are seeing the benefits of a big joint venture which have benefit the chip makers and we are also seeing hyperscalers coming into action, so we might see more players into this big opportunity.

So I expect the market to experience selling pressure as profit taking might take place but we could be seeing stronger performance from the tech and also Netflix.

Appreciate if you could share your thoughts in the comment section whether you think market could still perform despite selling pressure.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.