tsptalk's Market Talk

Stocks and yields are trying to bounce back, and perhaps fill gaps left open from Monday's crazy reaction to DeepSeek. Not crazy, as in it shouldn't have happened, but it was a bit of an overreaction and a "sell first, ask questions later" reaction across the board - even some stocks unrelated.

Today we are seeing some backing and filling, but it's tough to say yet if it's just dead cat bounce action. Interest rates are still going to come down again by the May FOMC meeting and liquidity is still on the side of the bulls, so any bears that believe this A-I news is going to kill the bull market, could still have a tough fight on their hands.

Maybe I am wrong and misunderestimating what DeepSeek means to US tech stocks, but there is plenty of fuel for stocks right now, and until that changes, we'll probably keep seeing the bulls buying those dips.

Watch the reaction once these gaps are filled.

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The day starts with yields and stocks down modestly, but there is a million miles to go today, and into the end of the week. We haven't had a 10% correction in a while, but the current monetary policies have continued to help promote dip buying.

The Fed is expected to keep interest rates unchanged but that doesn't mean there won't be a big reaction to their updated policy statement and commentary.

After the bell Microsoft, Tesla, and Meta all report earnings.

Let the fireworks begin -- at 2 PM ET.
 
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