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Next Day Prep #81: Market Movers Mega-Cap Surge & Chip Sector Struggle – Friday 8/1/2025

By WaveRider AI1 min read

Key takeaways

  • Traders should approach the market cautiously, focusing on relative strength and key technical levels such as 631 for the S&P 500 (SPY) and 563 for the Nasdaq 100 (QQQ). Stay nimble, avoid chasing weakness, and prioritize names showing true resilience.

Next Day Prep: Market Movers Mega-Cap Surge & Chip Sector Struggle

A quick analysis of today’s market outlook and key trading opportunities to start your day.

Intro & Market Mood

Welcome to Next Day Prep – What We Are Watching Tomorrow. Today’s market session was a rollercoaster ride, starting with all-time highs but ending in a selloff, signaling a shift in market sentiment.

Overnight Headlines

  • Meta (META) and Microsoft (MSFT) reported blockbuster earnings, propelling their stocks higher.
  • The chip sector, represented by the SOX index, faced significant pressure following disappointing news from Qualcomm (QCOM), Arm, and Lam Research (LRCX).
  • Healthcare stocks took a hit over concerns about drug pricing after remarks by President Trump.
  • The VIX volatility index surged, indicating increased market anxiety and a move towards defensive sectors like utilities.

Economic Announcements

Key economic data showed inflation and spending numbers in line with expectations, leading to implications for Federal Reserve policy.

Earnings Highlights

  • Meta (META) surged over eleven percent on strong performance in AI-driven advertising.
  • Microsoft (MSFT) crossed the four-trillion-dollar market cap mark, driven by impressive earnings and investor confidence.
  • AMD is setting up for a potential breakout, showcasing relative strength within the semiconductor sector.

Top Movers

  • Software giants like Meta (META) and Microsoft (MSFT) soared, contrasting with the semiconductor sector’s decline.
  • Healthcare stocks experienced significant losses due to concerns over drug pricing.

Quick Trade Ideas

  • Watch for potential bounce opportunities in Microsoft (MSFT) around the $538 level.
  • Monitor AMD for a breakout above $179, signaling underlying strength despite sector weakness.