Narrow Tech Rally Ahead of Key Fed Speech
The author of this piece had a satisfactory day with their portfolio's performance. CrowdStrike (CRWD) rose by 20.5%, while IBM (IBM) gained 3.9%. The semiconductor sector also performed well, with Nvidia (NVDA) increasing by 8.7% and Taiwan Semiconductor (TSM) rising 2.3%. However, the author notes that this was a narrow rally, as other sectors underperformed.
The Dow Jones U.S. Semiconductor Index gained 4.84%, while the Philadelphia Semiconductor Index added 2.33%. Tech stocks also performed well, with the Nasdaq Composite and S&P 500 rising by 1.57% and 0.72%, respectively. However, small-cap stocks underperformed, with the Russell 2000 gaining only 0.28%.
Only one of the 11 S&P sector SPDR ETFs closed in the green on Thursday, with tech (XLK) rising by 3.16%. The author notes that breadth was not confirmed by advancing volume, which took a 46.2% share of composite NYSE-listed activity.
Meanwhile, Fed Chair Kevin Warsh is set to deliver a speech at the Jackson Hole symposium in Wyoming, which may signal policy shifts. The author expresses concern that the timing is wrong for short-term interest rate hikes, citing supply shocks as the cause of inflation. They hope that Warsh will understand this and refrain from raising rates.