Earnings, AI Optimism, and Bears Back on GME

Global Mood

Markets are catching a bid. Global stocks rose Monday as AI optimism pushed the Nasdaq close to a record high. Taiwan's tech-heavy index is now up over 60% this year, its highest level ever. The rally reflects renewed confidence that semiconductor demand remains strong — even as options traders load up on downside protection in NVDA and AMD ahead of key results.

Semis and Earnings in Focus

Micron Technology heads into Q4 results with its stock up 256% year-to-date. Options flow is skewed bearish despite low short interest of 2.6% of free float. Costco Wholesale reports Thursday after the close. It is the retail event of the week, with a $397bn market cap and membership fee trends in focus. AutoZone drops results Tuesday morning, and General Mills follows Wednesday.

Analyst Moves

Citigroup upgraded Fifth Third Bancorp to Buy today, lifting its target to $62. Jefferies cut both Marathon Petroleum and Valero Energy from Buy to Hold, citing pressure on refining margins as crude spreads tighten. META got a big target raise — Jefferies lifted it to $875 from $710.

Short Sellers Return to GME

GameStop short interest jumped from 0.9% to 7.2% of free float in seven days. Bears are rebuilding positions after years of meme-driven losses. Wolfspeed remains the most structurally shorted chip name at 81% of free float.

Europe Watch

UK government borrowing surged in August — described as "dismal" by analysts — adding pressure on Chancellor Healey ahead of the Budget. DWS, Deutsche Bank's asset manager, is exploring emergency curbs on German property funds as investors withdraw cash. The National Stock Exchange of India is finally set for its long-awaited $46bn market debut.