Technology stocks are under renewed pressure despite another blockbuster earnings report from Micron. While strong AI demand continues to lift memory chip makers, soaring chip prices are now creating problems for the companies that buy them. Apple warned that higher memory costs are forcing significant price increases, raising fears that consumer demand could weaken and profit margins could come under pressure. The selloff spread across Asia, dragging down Samsung, SoftBank, the Kospi and the Nikkei, while Chinese technology stocks remained under pressure as investors questioned their ability to convert AI investment into sustainable profits.
Meanwhile, easing bond yields and falling oil prices are reviving the rotation trade, with investors increasingly looking beyond expensive technology names toward non-tech sectors and government bonds.
I also discuss why reports of a possible OpenAI IPO delay, El Niño's inflation implications, and falling global yields could shape market sentiment in the weeks ahead.
Watch the full episode to find out more!
Intro1:03 US PCE comes in line with expectations, pulling yields lower
2:11 But equities selloff as Apple worries outweighed Micron earnings
4:28 Hang Seng flirts with bear market
7:05 Moving forward: rotation to non tech and bonds?
7:47 El Nino and potential market impacts
