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Morning Commentary

VERY SOLID SESSION

By Charles Payne, CEO & Principal Analyst
2/19/2025 9:37 AM

The S&P 500 was back in the neutral zone on Tuesday, but make no mistake: there were pockets of ‘extreme greed,’ and it's becoming the stuff of legends.

On the NASDAQ Composite, advancers were equal to decliners, but saw more up versus down volume. That’s feverish.

There has been all the action in the chip space, with several stocks unmoored from traditional valuation metrics. The VanEck Vectors Semiconductor ETF (SMH) index is trying to fill a monster gap created when Nvidia (NVDA) tumbled hard in January.

Meanwhile, Super Micro Computer Inc (SMCI) and Intel (INTC) led the charge on the S&P 500 (SPX).

Energy Leads the Way

Interestingly, two of the three growth sectors were down during the session, with Communication Services (XLC) taking the biggest hit.

The seesawing continues. Software pops and hardware drops or vice versa. Technology (XLK) pops while Communication Services drops, which was the case yesterday.

Extended Factors fared well across the board, but it's clear investors were looking for an off-ramp from growth and momentum.

Large-cap value won the day.

Today’s Session

Futures are lower this morning as the Street weighs in on the latest 25% tariff salvo and waits for the Fed minutes later this afternoon.

Investors are also eyeing a key election in Germany this Sunday, which polling suggests will shakeup their political arena as conservative parties gain momentum.

January housing starts declined 9.8% m/m, below consensus of -7.3% and after December’s surge of +16.1%.

Building permits rose 0.1% m/m, beating consensus of -1.5% and last month’s reading of -0.7%.


 

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