Market Overview
The past week saw a decline in tech stocks, with the QQQ falling by 4.34% and the SPY by 2.36%. This decline was driven by a range of factors, including concerns about the chip shortage and its impact on the smartphone industry, as well as the potential for a record annual decline in smartphone sales [13]. The market was also affected by the upcoming SpaceX IPO, which is expected to be a major event [7].
Sector Performance
The tech sector was the worst performer of the week, with stocks such as MSFT, TSLA, and AMZN experiencing significant declines. In contrast, the cloud computing sector is expected to benefit from the AI build-out over the long term, making it a potential area of growth [6]. The chip shortage is also having a major impact on the industry, with companies such as Micron experiencing significant gains [5].
Earnings And Data
The week saw a range of earnings and data releases, including the announcement that Nvidia's new Vera chip will use SK Hynix's memory chips [1]. The company's CEO also predicted a strong second half of the year and next year. The market was also affected by the release of robust jobs figures, which led to a decline in stocks [3].
Looking Ahead
The upcoming week is expected to be significant, with the SpaceX IPO taking place [7]. The market will also be watching the release of the CPI data, which is expected to show renewed pressures [7]. Additionally, the Oracle earnings release will be closely watched for signs of AI cloud growth [7].