Fed Chair Jerome Powell has been trying to talk tough on inflation for a year. For the most part, the market has paid little attention, but this time the message seems to have hit home. Or maybe it is just the seasonal weakness that is helping Powell. Or the rise in yields. Or the rise in oil. Or the potential government shutdown. Or the UAW strike. Or student loan payments resuming. What soft landing? Large pieces of the market are approaching oversold conditions, particularly small caps.
Semis this month Nvidia down 12% Teradyne down 12% Marvell down 10% STMicro down 10% AMD down 9% Taiwan semi down 8% That much-discussed Arm IPO didn't help. Prices at $51, goes to $69 on the second day of trading, and closes Friday at $51.32. Anyone buying on the first or second day is way underwater. "It's enough to make you think, what soft landing?" Frank Gretz, an analyst at Wellington Shields, mused in a note to clients on Friday.