WaveRider
Start free
ProductsInsightsPodcast Start free Log in
Podcast

Next Day Prep #101: Tech Sinks, Defensive Rotation Rises – Friday 8/29/2025

By WaveRider AI1 min read

Key takeaways

  • Remain cautiously optimistic amidst short-term fluctuations. Focus on stocks with relative strength and key index levels. Look for volume to return after the holiday weekend.

Next Day Prep: Tech Sinks, Defensive Rotation Rises

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. August closed strong for the bulls, but Friday’s market felt a bit fatigued, primarily due to tech underperformance.

Overnight Headlines

  • Tech mega-caps, especially in semiconductors, saw downward pressure, with companies like NVDA (NVIDIA) down over 3%.
  • Marvell faced a significant drop of almost 19% due to guidance concerns and delays in big chip deals.

Economic Announcements

The PCE inflation report remained steady with core PCE at 2.9% year-over-year, in line with expectations, reinforcing an 87% chance of a rate cut in September.

Earnings Highlights

  • Ulta Beauty, Affirm, and Autodesk reported strong performances amidst a mixed earnings landscape.
  • Dell exceeded expectations but saw a drop of almost 9%, reflecting high market expectations in a hot sector.

Top Movers

  • HYMC in precious metals and SYK (Stryker) in healthcare showed notable strength for potential trading opportunities.
  • Watchlist stocks like LTRX and TMC (The Metals Company) are poised for potential breakouts.

Quick Trade Ideas

Consider entries in HYMC around $4.50 and SYK around $391 for potential moves. Watch for breakouts in LTRX and TMC for potential price runs.