To The Moon

The market saw the U.S. stocks rose on Monday (10 Feb) to begin the week on a positive note, ignoring the additional tariff threats. This has helped it to recover from last Friday's declines with a buy-the-dip trend after consumer sentiment data suggested tariff uncertainty has contributed to a drop in confidence about the economy in recent weeks.

President Trump over the weekend said he planned to impose reciprocal tariffs on any country that taxes U.S. imports, as well as a 25% tariff on all steel and aluminum imports. Shares of steelmakers U.S. Steel (X) and Cleveland-Cliffs (CLF) rose on Monday. That has also helped Nucor (NUE) to rise 5.6% and Alcoa (AA) also gained 2.2%.

The major indices ended the day at their highs, with many stocks contributing to the gains.

S&P 500 Sector Gained From Mega-Cap and Earnings Strong Performance

There was significant performance from mega-cap stocks like $NVIDIA(NVDA)$ gained 2.87% to close above $130, $Microsoft(MSFT)$ also did well to gain 0.60% while $Amazon.com(AMZN)$ manage to add 1.74% to its share price. We also saw Vanguard Mega Cap Growth ETF (MGK) gain 1.0% increase.

These stocks have helped the information technology sector finish in the green with 1.45% gain, and

McDonald's (MCD) reported strong results, with 4.8% gain at close also helped the consumer discretionary sector to close 0.5% higher together with Amazon.

Rockwell Automation (ROK) surged 12.7% and helped the industrials sector to gain 0.91% higher. Monday.com (MNDY) also soared 26.5%.

Note Yield Was Mixed

The New York Fed's Survey of Consumer Expectations showed stable inflation expectations, with one-year and three-year projections at 3.0%, and five-year expectations slightly higher at 3.0%. The bond market saw steady yields, with the 10-year Treasury yield rising by one basis point to 4.49%.

Stocks To Watch

Elon Musk has made headlines with an unsolicited $97.4 billion bid for the non-profit entity controlling OpenAI. Musk's lawyer, Marc Toberoff, confirmed the submission of the bid to OpenAI's board, aiming to revert OpenAI to its original open-source model. OpenAI's CEO, Sam Altman, humorously countered by suggesting a potential purchase of Twitter for $9.74 billion. This move comes amidst Musk's ongoing legal actions against OpenAI.

Meta Platforms (META) continues its impressive growth trajectory, closing higher for the 15th consecutive session. The company's stock has surged over 52% in the past year, significantly outperforming the broader market. Meta plans to invest $65 billion in artificial intelligence this year, a substantial increase from last year's expenditure and above analysts' expectations, signaling a strong commitment to technological advancement.

$SUPER MICRO COMPUTER INC(SMCI)$ soared by 8.7% as the company prepares to report its latest financial results. The information technology firm has gained 45% over the past five trading sessions, with analysts anticipating earnings of $0.75 on $5.94 billion revenue for its fiscal second quarter. The market eagerly awaits clarity on the company's FY2024 financials and its recent engagement with a new auditor.

$Intel(INTC)$ shares rose by 3% as its latest processor, the Intel Core Ultra 9 275HX, received positive reviews for its performance and battery life enhancements. The new processor has been recognized as the fastest on the market, surpassing AMD's Ryzen 9 7945HX3D chip, and contributing to Intel's recent positive financial results.

Even with the recent performance from INTC, from the technicals, it is still not convincing that we could see INTC making upside movement, as we have seen how INTC have been trying to break out from the inverse 12-EMA chart, but it will end up trading range-bound.

So we need to see strong gap up with more convincing RSI data indicating strong investors buying interest, but now we are still not seeing much.

Though the current price is pretty favorable, but beware of any downside that could happen if the order for INTC new chips does not really live up to its performance.

Groq, an AI semiconductor company, secured a $1.5 billion commitment from Saudi Arabia to expand its AI processor deployment. Known for its language processing units, Groq is seen as a competitor to Nvidia (NVDA) and has been valued at $2.8 billion following a recent funding round.

Summary

I think we might be seeing market continue to trade in a positive vibe as traders and investors have get around the tariff threats and focus on some of the more significant earnings. We could be seeing a sector rotation back to technology, but we will need to see continued improvement in the mega cap stocks.

Appreciate if you could share your thoughts in the comment section whether you think market is coming back on a positive vibe with stronger mega cap stocks performance.

@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.