OP Wire 3/10 (OP – Lite)

By Steve

The stock market remains volatile as President Donald Trump is set to meet with U.S. semiconductor executives tomorrow, a critical event that could impact the trajectory of the tech sector. Meanwhile, major U.S. stock indexes continued their recent slide on Monday, driven by concerns over Trump’s shifting trade policies, potential economic slowdown, and uncertainty surrounding tariffs.

Stock Market Recap: Heavy Losses Continue

As of 5:25 AM ET, the futures market reflected further downside:

Dow Jones Futures dropped 400 points (-0.9%)
S&P 500 Futures fell 65 points (-1.1%)
Nasdaq 100 Futures tumbled 250 points (-1.3%)

These declines follow a brutal week for equities:

S&P 500 fell nearly 3%, marking its worst weekly performance in six months
Dow Jones Industrial Average lost 2.2%
Nasdaq Composite plunged 3.5%, now down over 10% from its December highs—officially entering correction territory

Trump’s Meeting with Chipmakers: What to Watch

The President’s upcoming discussion with key U.S. chip executives could provide insight into the administration’s stance on semiconductor policies and global competition. Key developments leading up to this meeting include:

Intel’s Struggles: Ongoing uncertainty surrounding potential restructuring and regulatory concerns has led to a 25% drop in Intel’s stock from its February highs.
Nvidia’s Volatility: Recent investigations in Singapore and reports of possible order cancellations have pressured Nvidia’s stock, which has dropped nearly 9% in the past week.
TSMC’s Expansion: Taiwan Semiconductor Manufacturing Company announced an additional $100 billion investment in U.S. chip production, aligning with Trump’s push for domestic manufacturing.

The outcome of this meeting could influence semiconductor stocks significantly. If Trump announces incentives or policy support for domestic chipmakers, it could provide a much-needed boost to the sector. However, continued uncertainty around tariffs and global supply chains could keep pressure on these stocks.

Trump’s Tariffs & Economic Outlook: More Uncertainty Ahead

Markets remain uneasy following Trump’s decision last week to impose 25% tariffs on Mexico and Canada—only to partially roll them back days later. This inconsistency has fueled concerns over the administration’s trade policy and its impact on economic growth.

Adding to market anxiety, Trump declined to rule out a potential U.S. recession during a Sunday Morning Futuresinterview on Fox News. When asked about the risk of economic contraction, he responded vaguely, stating the country was in a “period of transition.”

The President’s tariff decisions have already triggered Chinese retaliatory levies, and with reciprocal tariffs set to take effect on April 2, investors remain on edge.

Key Economic Data to Watch This Week

The market will be closely watching economic reports that could shape Federal Reserve policy:

CPI Inflation Report (Wednesday, March 13th):
- Expected to show a 2.9% annual inflation rate, down slightly from 3.0% in January
- Month-over-month inflation expected to ease to 0.3% from 0.5%
- This will be the first full-month inflation report under Trump’s administration since his return to the White House
JOLTS Job Openings (Tuesday, March 12th)
PPI Producer Price Index (Thursday, March 14th)
University of Michigan Consumer Sentiment (Friday, March 15th)

The CPI report will be critical as it is one of the last major inflation readings before the Federal Reserve’s March 18-19 policy meeting. If inflation continues to decline, it could support the case for rate cuts later in the year.

Tech Earnings on Deck

Investors will also be monitoring tech earnings this week, with reports from major players:

Oracle (NYSE: ORCL): Expected to detail AI-related investments alongside OpenAI and SoftBank
Adobe (NASDAQ: ADBE) and DocuSign (NASDAQ: DOCU): Key indicators for the software sector
Retail Earnings: Reports from Dick’s Sporting Goods (NYSE: DKS) and Kohl’s (NYSE: KSS) will provide insights into consumer spending trends

Oil Prices Stabilizing After Selloff

Oil prices steadied Monday after dropping to three-year lows last week, weighed down by demand concerns amid Trump’s shifting tariff policies.

Brent crude rose 0.2% to $70.53 per barrel
WTI crude gained 0.2% to $67.21 per barrel

Chinese economic data over the weekend showed continued deflationary pressure, further clouding the outlook for global oil demand.

Market Technical Levels: Where Do We Go Next?

Nasdaq-100 (NQ) Technical Outlook

Last week, we analyzed whether the February 28th session marked a local low. Monday’s price action showed initial strength, but sellers quickly stepped in, leading to a bearish engulfing of Friday’s candle.

Key downside levels:

20,000 – Major psychological support
19,775 – Key Fibonacci retracement level
19,200 – Deeper support zone

Key upside levels:

20,500 – Initial resistance
20,700 – Breakdown point from last week
21,200 – Bullish target if momentum returns

Friday’s hammer candle suggests potential for a rebound if buyers can reclaim 20,315 and show sustained strength. Otherwise, another retest of 19,775-20,000 could be in the cards.

Final Thoughts: What’s Next for the Market?

With Trump’s semiconductor meeting, key inflation data, and ongoing tariff uncertainty, this week promises to be pivotal for the markets. Investors should brace for continued volatility, particularly in tech and semiconductor stocks.

At OptionsPlayers, we’ll continue monitoring these key events and technical setups to help you navigate the markets. Stay tuned for further analysis and real-time updates!

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL