The S&P 500’s recovery off the lows is all about the return of the AI trade
The S&P 500 is about 1.4% off the lows as of 2:00 p.m. ET.
If the benchmark gauge is going to cleanly hold its 200-day moving average (which roughly marked the trough so far today), then today’s leaders off the lows may be poised to be the names that also drive any potential recovery in the days to come. If this isn’t the “true bottom,” then... well, you overprepared and know what to do next time the market falls out of bed and then attempts to get its act together.
To this end, we looked at the top 20 S&P 500 stocks since 11:29 a.m. ET, which is roughly the double bottom on an intraday basis.
One noteworthy trend is that half of these have been big beneficiaries of the AI boom:
Chip designers and server companies like Nvidia, Super Micro Computer, AMD, Broadcom, and Micron
On the power and infrastructure side, we’ve got Vistra, GE Vernova, NRG, Axon, Arista Networks, and Monolithic Power Systems
The tenor of the tape since a little before midday looks a lot like a bounce in the beaten-up momentum names, as Tesla and Palantir Technologies are also among the leaders. In other words, the momentum names with ugly, broken charts are what’s keeping the S&P 500 from having an ugly, broken chart.
