Dip-rushing

00:00:00: Investors didn't wait long before rushing back into technology stocks after a brief, very brief sell-off triggered by the stronger than expected US jobs data and some concerns about AI related demand.

00:00:12: But the rebound today reinforces dependent on the AI narrative, where every dip is very quickly attracting fresh buyers.

00:00:22: While on the other hand hopes of a ceasefire between Iran and Israel helped ease oil prices and yields yesterday underlying energy risks remain largely ignored by global investors.

00:00:34: And I understand because SpaceX headlines are certainly way more exciting than news of a burning planet.

00:00:42: So welcome to Swiss coats.

00:00:45: daily Market Talk is Tuesday, the ninth of June.

00:00:49: I'm Ipega Skardeshkeya.

00:00:50: we will talk about technology and rest before we do And as always please keep in mind that opinions are my own.

00:00:58: This

00:01:06: show brought to you by SwissQuote.

00:01:08: So my major question yesterday was whether the technology road that started on Friday, on the back of it stronger than expected us jobs data and a few other news pointing.

00:01:18: That new technologies could eventually reduce the need for dram memory.

00:01:22: an AI safeguards to slow down AI adoption would be The beginning of it.

00:01:27: deeper and much needed downside correction or not?

00:01:31: Well turns out that It was just another blip.

00:01:34: Technology stocks rebounded in the US session yesterday as deep buyers rushed-in, and a continuation of now usual dip rushing which basically prevents dips from developing into healthy valuation risks.

00:01:49: In this context, Nasdaq hundred for example retreated a bit more than five percent since its June third peak following at thirty three per cent rally Since April and the S&P Five hundred fell it but more then Three percent just three percent during The same period.

00:02:06: we can't really call This dip or debt buying.

00:02:09: buyers are simply jumping on the back of a bull in the slightest occasion And this is huge and historical rally.

00:02:16: Occasionally, yesterday was the news that Iran and Israel would finally stop bombing each other after a bomb fall weekend.

00:02:24: The latter pulled crude oil prices lower along with U.S.

00:02:27: Seals, US-created consulates near ninety dollars per barrel level this morning on hope that the latest ceasefire will work!

00:02:35: But I can't stop myself from thinking that it won because the political setup today in Israel becomes increasingly more complex into elections there and Mr.

00:02:45: Netanyahu must show his population, he is ready to do anything for security of this country.

00:02:52: So to me, risks remain two-sided.

00:02:54: We could see a further pullback in the short run in oil prices that can also pool global yields lower but in the midterm run believing an easy piece looks like a wishful thinking.

00:03:05: so The big question is how much longer?

00:03:08: Can this market run on AI steroids?

00:03:11: and no one has answered.

00:03:12: But the latest data warns at the Global Oil Reserves have now dropped to the operational stress levels And come September the reserves will drop to the Operational Floor level, which is the minimum level required to keep pipelines functioning and refineries operating.

00:03:28: The thing is pricing across energy and risk markers are widely ignoring the energy crisis.

00:03:34: so For now, there is enough fuel in investors' minds though at least for technology.

00:03:42: Marvel Technology yes the one that Jensen Huang said would become next trillion dollar company actually rose more than nine percent in yesterday's trading session in the US after an announcement it will enter the S&P five hundred late last Friday.

00:04:01: Korean Cosby Index also rose nearly eight percent in today's trading session, with the SK Heining jumping as much as thirteen per cent.

00:04:11: And a day where there rise were four less than five percent.

00:04:14: and The Korean Cospy index has actually become quite rare.

00:04:17: to say how this market is volatile and hence How much?

00:04:22: A major part of the market moves that we see their Is speculation.

00:04:27: Indeed, Cospy's volatility index keeps rising to unbelievable levels.

00:04:33: Meaning that!

00:04:34: Warning that when the music stops there will be carnage.

00:04:38: But anyway thats not do for today.

00:04:40: Today we continue to observe technology vs non-technology.

00:04:44: narrative played out quite nicely.

00:04:46: what technology attracting flows while Non-Technology pockets of global financial markets lagging behind.

00:04:53: The news that open AI also filed for IPO is masking the ugly case-shaped economy where technology and technology related parts of global economy do well, shareholders do great as well while the rest off to market.

00:05:06: employees are struggling with rising burden costs and rising living and operating cost.

00:05:12: And that explains why investors cannot drop out because the ebbs below looks far worse than the risks above.

00:05:20: Look, economic data yesterday showed that German factory orders dropped more than two percent expected by analysts and mostly due to a more than eleven-percent drop from the euro area order.

00:05:34: Last, a benchmark for European tenure still rose on the back of higher oil prices in the European session Weighing on the SUK-Six Hundred Index as well, but that was before the peace news crept in.

00:05:48: Still Peace hopes or not The Europeans are losing hope As European Central Bank is now preparing to announce its first rate hike In almost three years this Thursday and with limited exposure to technology, European indices are condemned for the end of Middle East conflicts to claim their share off-the-cake where now cyclicals remain largely in rearview mirrors while Europeans are mostly cyclical.

00:06:13: As such, the Eurodollar is also falling out of grace these days despite relatively hawkish European central bank expectations.

00:06:22: The one fifteen level here could act as a solid floor.

00:06:28: Of course, tensions in the Middle East and oil prices fall sustainably.

00:06:32: If not even the ECB rate hikes may not prevent your dollar from slipping below the one-fifteen mark on back of worsening euro area growth outlook due to energy crisis.

00:06:43: In Japan The Dollar Yen console lays near a critical one hundred sixty level.

00:06:48: as traders are holding their breath every second To see if when Japanese officials would step into stop bleeding The simple idea that Japan cannot let the dollar rise further caps upside potential for now.

00:07:03: The softer US dollar could earn some more time before Japanese authorities intervene Because it's costly to do so, the more they wait the better.

00:07:13: But eventually I believe that intervention in the dollar yen will be inevitable elsewhere.

00:07:18: Australian dollars stronger today on the back of a broadly softer US dollar but also strong.

00:07:24: trade data from China showing both Chinese exports and imports rose twenty-thirty percent respectively.

00:07:31: May Chinese CSI-XI index is better, but today while appetite for the Hong Kong's technology heavy, Hansang Index actually lags behind Taiwanese and Korean peers.

00:07:42: I firmly continue to believe that the Chinese technological value will pick up momentum sometime with AI infrastructure AR shouldering the next leg up across to Chinese technology names, but Chinese capital markets must wait their turn when there are so many exciting US companies like SpaceX open air and anthropric preparing To go public starting from this week.

00:08:06: So speaking of that space X IPO is reported the over subscribe hinting that we will likely see a nice first day rally This week.

00:08:15: That was certainly be followed by period off valuation reset.

00:08:18: But what will happen?

00:08:20: on their revenue from the company.

00:08:23: Google, for example just signed an eye-watering deal where it will pay nine hundred and twenty million US dollars per month to SpaceX For thirty two months to rent AI compute capacity From The Company.

00:08:36: as such SpaceX has Just become a major AI infrastructure provider almost overnight.

00:08:43: That's going To be on earth unfortunately As is selling access to AI data centers.

00:08:47: that now set insights.

00:08:49: SpaceX after the integration of XAI, but a few more customers like this and SpaceX stock could be actually headed for the moon before its rockets are.

00:08:59: And Google.

00:09:00: look at Google.

00:09:01: despite operating some of the world's largest data centers The company still cannot build AI capacity fast enough on his own to tell.

00:09:09: maybe it's just not the stock market itself.

00:09:11: in a bubble, may be.

00:09:13: demand outlook is.

00:09:14: So this all for today.

00:09:16: I'm Ipekos Kardashian and thank you for joining me And Thank You For All Your Beautiful And Supportive Comments!

00:09:39: and Blue Sky for regular market updates.

00:09:41: Subscribe to our YouTube channel for daily market comments, please don't forget hit the like button on these videos so let us know that you enjoy them!

00:09:51: I will meet again tomorrow and until then good day trading!

00:10:03: SwissQuote assumes no responsibility for accuracy or losses from its use.

00:10:07: Products and services are offered only where legally

00:10:09: permitted.".