Market Dive: AI Stocks Dip, SpaceX IPO Debuts, Oil Prices Fluctuate

Summary

The market experienced a volatile week, starting with a sell-off, particularly in AI stocks, but ended on a positive note with the S&P 500 showing a bounce. Technical analysis suggests a critical juncture for the market next week, determining if it will make a lower high, signaling a potential top, or a higher high, indicating a continued uptrend. SpaceX made its highly anticipated debut as a company valued over 2 trillion dollars, though its intraday trading showed retail buying early on that subsided, with roughly 50% of today's buyers reportedly already down on their investment. Concerns linger about its valuation at over 100 times revenue and its reliance on government contracts and Starlink. The US 10-year yield saw a slight increase, while oil prices reacted to uncertainty surrounding a potential Iran deal, falling but with traders believing a deal will eventually be struck. Analysts suggest oil may settle around $75 per barrel even if straits reopen, due to depleted strategic reserves. Adobe's stock fell despite beating earnings expectations, partly due to its CFO's departure, but some analysts see a potential bottoming formation. Space-related stocks like Rocket Labs and ASTS experienced significant drops, potentially due to the SpaceX IPO and increased competition. Amazon and Microsoft showed signs of potential bounces after filling gaps, with buyers stepping in for Microsoft. Overall market breadth remains a concern, with more stocks declining than advancing despite market gains, suggesting underlying weakness. Gold and silver remained quiet, with expectations of further declines. Bitcoin shows near-term bullishness, needing to break above $64,200 for a potential move towards $70,000.