September 24, 2025

Markets:

Stock futures ticked higher on Wednesday as artificial intelligence giant Nvidia recovered some of its losses from the previous session.

Nvidia were marginally higher on Wednesday, rising 0.2% in the premarket, reversing course from the prior trading day that was dominated by heightened fears about the circular nature of the AI industry, sparked by a partnership between Nvidia and OpenAI. Nvidia, along with fellow leading AI player Oracle, tumbled on worries the advance was running out of steam with the outlook already priced into the shares.

Signaling that confidence in the AI trade is still in question, shares of Micron Technology initially gained Wednesday before ultimately moving lower as the company’s earnings and forecast weren’t strong enough to impress investors. The stock was last down 1%.

The S&P 500 closed in the red on Tuesday, snapping a three-day winning streak, on those AI trade worries. The broad market index had reached a new all-time intraday high earlier in the session and posted a record close the previous day. The Nasdaq Composite also fell, bogged down by Nvidia.

Traders could also be profit-taking amid elevated market valuations, which Federal Reserve Chair Jerome Powell called out at a Tuesday press conference.

Traders are cautious before jobless claims data Thursday and PCE inflation data Friday. They’re also watching troubling developments regarding a government shutdown. President Donald Trump cancelled a meeting with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries that could have possibly averted the shutdown before a Sept. 30 deadline.

Portfolio:

We enter todays session holding setups in CIFR and EOSE.  These are all trades we see running into early Q4 as a theme for next stage.  We expected a bit of swings early on this week and this is healthy for the market.  Yesterday, we saw massive lots being placed for end of year moves but interestly we began to see plays on longer dated plays into 2027.  One trade that hit the tape was super bullish – again these trades are not a retailer – "Nasdaq (QQQ) buyer of 1000 December 2027 $770 calls $27.90", targets $800+ for QQQ, or another 33% from here over the next 2 and a quarter years.  That is a hefty bet and we love to see it.  We've been pointing to this cycle last easily another two years.  This AI revolution is real and the dynamics of the world will be changing.  Lots of month will be made trading these moves.

Stay patient today.  Jobless claims data Thursday and PCE inflation data Friday.  I do expect we will run higher as we close out the week and with strong strength.  You see it building already.  But the real plan is now for Q4 and attacking the opportunity being created for it.  Be ready today.