The Nasdaq 100 is displaying bearish signals with a double top formation below the 50-day moving average, while the PHLX semiconductor index dropped 4.65% on July 7 despite positive earnings from Samsung. Seven tech companies now represent approximately 30% of the total S&P 500 value, concentrating risks: Nvidia, AMD, Micron Technology and Palantir are under increasing pressure, with a 10% decline in these stocks inducing a 3% drag on the broader index. Bitcoin and the broader crypto market show increased correlation with tech stocks, as large funds holding positions in both assets face margin calls during selloff events. Crypto projects focused on decentralized compute, AI tokens and GPU marketplaces are vulnerable to reassessment if the market judges that AI spending has gotten ahead of revenue reality.
Source: Read the original article
