NEWS
No Turnaround Thursday, But TGIF

Stocks cooled for the third time in four sessions as Fed Chair Jerome Powell's ‘hawkish’ remarks weighed on sentiment. His speech signaled no rush for cuts and dimmed hopes for a December trim. With this week’s inflation data out of the way, all eyes turn to the next big catalyst, Nvidia earnings. 👀

Today's issue covers the semiconductor sector’s concerning setup, SolarEdge setting up for a potential bounce, Trump’s cabinet appointments tipping certain sectors, and the world premiere you don’t want to miss. 📰

Here’s the S&P 500 heatmap. 1 of 11 sectors closed green, with energy (+0.38%) leading and industrials (-1.69%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $ADGM, $MTEM, $POOL, $NICE, $OWLT 📉 $CPS, $BRAG, $NKLA, $PDYN, $ME*

*If you’re a business and want to access this data via our API, email us.

NVIDIA DAY COUNTDOWN
The Semiconductor Setup Into Nvidia Earnings 🧐 

Broadening market breadth has shifted the focus from the lackluster performance in semiconductor stocks over the last six months. With Nvidia earnings rapidly approaching, let’s examine what could be the most important chart of 2025.

Below is the iShares Semiconductor ETF ($SOXX), which was a major leader in the market throughout 2023 and into mid-2024 but has recently faded in strength. Prices are below their 200-day moving average, hanging onto a trendline from their October 2022 lows. And Momentum has failed to reach overbought territory since July, showing a lack of commitment from buyers. 😩 

While bulls say a much-needed reset after a big run, bears say that If prices were to break below their uptrend line, that would signal a clear trend break and confirm the first “lower high” of a potential downtrend. 😬 

Nvidia, its largest holding (and the world’s largest company), will report results next Wednesday after the bell, and expectations have never been higher. As a result, the company’s numbers and subsequent stock reaction will set the tone for a semiconductor sector that clearly needs a catalyst to keep its long-term upward momentum going, primarily because other leaders haven’t taken the baton.

Take Advanced Micro Devices, for instance. The stock hit new all-time highs in March and has been trending sideways in a wide range ever since. With momentum showing mixed signals and prices sitting comfortably below a downward-sloping 200-day moving average, this is a sideways trend at best…and a downtrend at worst. Also, its 4% workforce cuts sparked further growth fears. 😨 

As the third largest weighting in the $SOXX semiconductor ETF, traders and investors are watching this closely to see how it develops. Some good news from Nvidia would certainly help bring buyers back into the market. But we’ll have to wait and see.

As for ‘Nvidia Day,’ be sure to follow @Stocktwits on the platform and our socials (X, Instagram, YouTube) to stay updated on all the action. 🚨