It's a tough time of year to try and make sense of market moves but I suspect we're seeing profit taking and position squaring into year end. Some of the high-flying power-generation stocks are getting beaten up today and Oracle continues to crater. We also saw Tesla hitting all-time highs this week, which I suspect was at least partially due to short covering.
Nvidia, Google and Broadcom are all among the worst performers in the S&P 500 as well.
The S&P 500 is down 0.5% while the Nasdaq is down 0.8% in another sign of where the selling is coming from.
In terms of the short-covering angle, some of the best performers are Moderna, Service Now and Chipotle, all laggards this year.
So overall, I wouldn't try to put any kind of macro or bigger stock market theme into the price action. I do suspect there is some real angst about AI and that could lead to some heavier tech selling at the turn of the year. For now though, this is flows not fundamentals.
