Between 10 year Treasury yields pushing past 4.7%, hawkish Fed signals, and Middle East headlines keeping crude elevated, market sentiment feels like a tug of war right now.
S&P 500 Q2 earnings growth has been strong on paper, but Wall Street is brutally punishing tech and semiconductor names for their massive AI CapEx budgets. When companies report double digit revenue growth but turn free cash flow negative due to GPU and data center spending, the market suddenly loses its patience.
Instead of a broad crash, we are seeing a sharp sector rotation. Tech and chipmakers are taking beatings as investors demand immediate ROI, while energy, power utilities, and industrial grid equipment are catching aggressive bids to supply data centers with real world power.
It creates a classic macro dilemma: solid tech valuations are getting chopped down, but stepping in front of rising yields feels like catching a falling knife.
Are you actively buying the dip in oversold growth/tech right now, or sticking strictly to defensive value and energy plays until the rate and geopolitical setup clears up?
Curious to hear what specific tickers you're tempted by at these levels, and whether you're DCA ing in today or waiting on the sidelines for a cleaner reversal signal.
(Disclaimer: Not financial advice, just crowdsourcing perspective on how you are navigating this market!)