I expect the Nasdaq to trade sideways this week, with volatility remaining elevated.
The market faces a tug-of-war between economic resilience and inflation risks. Stronger employment suggests the US economy remains healthy, but it could also give the Fed less reason to cut rates, keeping pressure on growth stocks.
Tuesday's CPI report will be the biggest catalyst. Cooling inflation could push Treasury yields lower and support tech stocks. However, hotter inflation could further pressure elevated AI valuations.
More importantly, investors need evidence that massive AI capital expenditure can translate into sustainable earnings and free cash flow.
My strategy is to avoid chasing a relief rally and watch Treasury yields and semiconductor performance.
Prediction: C — Sideways (-1% to +1%). Caution will likely dominate until inflation provides a clearer signal.
@TigerEvents [正经]
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