US market stabilized at the end of last week following a multi-day correction, with the SOX, Nasdaq, and S&P 500 recovering on Thursday and Friday. This rebound coincided with Trump’s announcement that a peace deal with Iran is close to being signed, alongside the highly anticipated listing of SpaceX (SPCX). The blockbuster IPO experienced a wild opening session, swinging from +10% at the open (from USD135 listing price) to a peak of +31%, before closing +19% at USD160.95. Concurrently, a number of SpaceX peers corrected by 10% to 32% as proxy bets on the sector unwound.
Constructive recovery
We view this late-week turnaround as an encouraging sign of broader market stabilization. Notably, we are seeing constructive recoveries across a variety of AI infrastructure segments. The core narratives driving the AI space remain unchanged, and numerous names are flashing constructive recovery patterns. Key setups include CPU plays like INTC, AMD, and ARM; storage leaders such as SNDK, STX, and WDC; and semiconductor equipment names like KLAC.
This serves as a reminder that during a market correction, our primary task is to observe which segments are showing clear relative strength. The strongest stocks, those that refuse to break down with the market, are frequently the first to rebound when the broad market selling pressure abates.
The information provided in this note is for educational and informational purposes only and does not constitute financial, investment, or professional advice.
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