The biggest story of the day is geopolitical. Iran shot down a US Apache helicopter over the Strait of Hormuz overnight. President Trump posted a warning that the US "must respond." Oil markets and defence stocks jumped on the news. The S&P 500 SPY came under pressure as risk sentiment reversed sharply.
A short-lived tech rebound ran out of steam. AMD shed 6% today. The leveraged semiconductor ETF SOXL cratered 15%. The broader chip recovery that started last week is now stalling. NVDA short interest already spiked in late May to $63B. Bears are not backing down. AAPL short interest crossed 1% of free float for the first time in months — $49B in bearish bets against the AI Siri story.
Analyst upgrades offered some offset. Wells Fargo lifted targets on ON Semiconductor, Texas Instruments, and NXP Semiconductors. The moves didn't prevent the broader selloff.
Apollo and Blackstone raised $35B in private credit to fund Anthropic's chip buildout. OpenAI filed paperwork for an IPO expected to value the company above $1 trillion. Both deals underscore that AI infrastructure demand remains intense even as public tech stocks slide.
ORCL reports Q4 results today after the close. ADBE and homebuilder LEN report Wednesday. The earnings calendar gives bulls a potential catalyst to arrest the selling. Oracle's cloud commentary will be closely watched given the AI spend debate.
Asian tech stocks rebounded after Monday's Wall Street AI rally — but that momentum has now faded. Indonesia unexpectedly raised interest rates to defend the rupiah. Oil is defying predictions of a summer supply crunch, staying well below $100 a barrel as Chinese import cuts ease global stockpiles.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
