The entire day of the stock market was like an emotional roller coaster ride, where the traders kept refreshing their screens every five seconds. Some stocks took off as if they had prior knowledge of the good news, while others stumbled on guidance, downgrades, or simply due to the nervousness of the market.
Investors from mega-cap giants to the small-cap risk takers were once again reminded that the market does not usually behave quietly or calmly.
Mega-Caps Make Noise & Micron Steals the Spotlight
Among the mega-caps, Micron Technology was by far the most visible and the most significant player. The semiconductor manufacturer took off after it laid the foundation for a gigantic $100 billion semiconductor complex in New York, which is a sign of long-term confidence and an industrial ambition.
American Express, IBM, Lam Research, and Applied Materials posted gains and gathered optimism around enterprise spending and semiconductor demand.
On the other hand, Intel is still hanging down, as not all chip stories can be treated equally. As for the losses, Alibaba and Palantir took a hit as concerns about global growth and the valuation of the respective companies came back.
Applovin had a particularly bad session, reminding the investors of the fact that the ad-tech stocks can go down as fast as they go up.
Large-Caps Big News & Bigger Reactions
Large-cap stocks executed the day’s most spectacular shifts. AST SpaceMobile’s shares skyrocketed after obtaining a location linked to the U.S missile defense systems, which is a clear indication that the defense and military-related news items to a certain extent can still drive the stock prices up.
Rocket Lab’s market price increase came after a bullish analyst upgrade, and Supermicro Computer alongside Iris Energy capitalized on continued interest in AI infrastructure and power-hungry data centers. On the other hand, among energy stocks, the likes of Vistra, Talen, and Constellation Energy suffered from rapid profit-taking, which indicated that yesterday’s gains could be wiped out today easily.
The Mid-Caps Updates
The mid-cap stocks were the ones that stood out. After announcing long-lasting responses in patients with its CAR-NK therapy, NantKwest’s and Lymphoma stock skyrocketed, proving the point that only one clinical update can literally flip the script for a company. In other places, Argan, Venaxis, Inflection Point Acquisition, Fly Leasing, Live Oak and others had nice gains.
However, Ermenegildo Zegna fell after a downgrade by BofA that brought up doubts about future development. The mixed performance is indicative of a market that is picky, responsive, and very much controlled by headlines.
Small-Caps High Risk & Higher Drama
Small-cap trading was definitely not for the weak-hearted. CytomX Therapeutics and NovaBay Pharmaceuticals made spectacular gains, which were mainly caused by the speculative enthusiasm and the general optimism.
Velo3D and Kopin stocks also climbed as investors eagerly looked for stories of company turnaround. On the other hand, Rich Sparkle Holdings and TryHard Holdings went down to the ground, which gave investors a painful reminder that the small-cap volatility sometimes strikes without a warning.
Bottom Line
Friday’s trading was a classic case of why the stock picking can be compared to a rollercoaster ride. Good news was rewarded quickly and strongly, whereas bad sentiment was punished severely and with no mercy.
As the surge in Micron’s stock and the fall in Applovin’s shares showed, the market is now extremely narrative-driven, and it will not hesitate to change its mind. For investors, the message is quite obvious, which is to get ready for the ride, pay close attention to the news, and do not assume that the market will be nice to them at all.