To The Moon

The stock market gave a mixed performance on Monday (24 Feb), there was initial weakness which see buy-the-dip activities going up, which is more significant in the mega-cap sector, but these buying activities did not hold until the market close.

Eventually we saw the major indices closed near their day’s lows. S&P 500 declined by 0.50%, NASDAQ was down the most with 1.21% loss while DJIA managed to secure a modest 0.08% gain after it was seen peaking at 0.6% increase in earlier session.

Selling Pressure Intensified Following Tariff Announcements

The market saw intense selling pressure following President Trump's announcement that tariffs on Mexico and Canada will proceed as scheduled after a one-month delay.

Significant declines could be seen in several stocks like $NVIDIA(NVDA)$ which fell by 3.09%, Microsoft (MSFT) also give back 1.03% and Amazon (AMZN) also dropped by 1.79%.

Apple (AAPL) emerged as a notable winner, rising by 0.63%. The company announced plans to invest over $500 billion domestically over the next four years, sparking speculation that this commitment might lead to a tariff exemption for Apple.

I am still confident with these mega cap stocks as these tariff impact might not have a long term impact on these mega cap tech stocks.

Watch Out For February Consumer Confidence Report On 25 Feb

On Monday, there is no significant U.S. economic data releases, but this week we will be having a potentially market-moving reports such as the Fed's preferred inflation gauge, the PCE Price Indexes, scheduled for release on Friday.

Before that, on Tuesday (25 Feb) we will be having the December FHFA Housing Price Index and December S&P Case-Shiller Home Price Index at 9am ET, at 10am ET, we will have the February Consumer Confidence.

S&P 500 Technology Sector Biggest Loser

The S&P 500 Technology sector was the biggest loser having close 1.43% lower with losses from NVDA and MSFT overpowered the Apple’s modest gains of 0.63%.

The declines in other mega-cap stocks also caused the consumer discretionary sector to fall by 0.87% and communication services sector also lost 0.63%.

Note Yield Saw Gains As Investor Move To Safe-Haven

Treasuries saw gains as part of the ongoing safe-haven trading trend that started last week. The 10-year yield decreased by three basis points to 4.39%, and the 2-year yield fell by two basis points to 4.17%.

Stocks To Watch

Nvidia (NVDA) has initiated legal action against a European Union regulator over an investigation into its acquisition of Run:ai. The company argues that the probe was unnecessary as the deal did not meet EU Merger Regulation thresholds. Nvidia is contesting the Italian Competition Authority's referral, which it claims relied on loosely defined powers. This lawsuit could influence future regulatory authority over mergers, though it currently does not affect the acquisition.

$Walgreens Boots Alliance(WBA)$ saw its stock rise by 6% following reports of a potential buyout by Sycamore Partners. The private equity firm is reportedly working with Morgan Stanley and UBS to finance a $10 billion acquisition package. This development follows previous speculation about Sycamore's interest in the drugstore chain, which had already spiked Walgreens' shares.

$Microsoft(MSFT)$ is reportedly reducing its AI data center lease commitments, according to TD Cowen. The move is seen as a response to competition from startups like DeepSeek, which challenges Microsoft's AI dominance. This strategic shift comes as Microsoft adjusts its infrastructure spending, impacting related sectors such as nuclear power.

$Zoom(ZM)$ exceeded Q4 EPS expectations with $1.41, although revenue of $1.18 billion fell short by $10 million. The company reported strong enterprise growth and cash flow improvements, maintaining a robust operating margin as it navigates post-pandemic demand shifts.

There is still an opportunity to look at ZM as it is currently trading below the 50-day period but with the earnings beat expectations, I am looking at investors coming back to push the RSI into a stronger momentum, this should help ZM to attempt an upward trend.

I will be considering to take a position to take advantage of the low price target.

Summary

We could be seeing more sell off today on the tech stocks as investors would be moving into safe haven, this might be a chance to load up some of the good quality stocks. I did that in August 2024 when prices was trending much lower.

I will be fishing for opportunities and hope to share what I found. Stay tuned!

Appreciate if you could share your thoughts in the comment section whether you think market would still be in a selling pressure mode, we might see some buy-the-dip in later session today (25 Feb).

@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.