DeepCap Tuesday Outlook

Chip stocks lead Asia rebound; OpenAI files for IPO as AI giants head to public markets

DeepCap Tuesday Outlook

The Day at a Glance

🎯 Theme: Chip stocks lead Asia rebound; OpenAI files for IPO as AI giants head to public markets
πŸ“Š Risk Mood: Cautious (VIX 18.92, -12.04%)
⏰ Key Event: China credit data release (M2 Money Supply, New Loans, Total Social Financing)
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Key Headlines

  1. Odds of a Fed hike this year jump on prediction markets
    Fed policy expectations and rate-sensitive market dynamics.
  2. Citadel Securities Sees Risk of Fed Forced to Raise Rates Soon
    Federal Reserve policy outlook and rate environment driving strategic positioning.
  3. Markets are getting more skeptical on AI spend, says GQG’s Kersmanc
    Market skepticism and selling pressure specifically tied to AI spending and tech valuations.

The Day Ahead

Yesterday’s Takeaway

Tech resurgence dominated yesterday’s session as chip stocks led a broader market rebound, with Intel Corporation surging +11.19% and Cerebras Systems Inc. climbing +18.32%. The narrative shift from sector doom-loop fears to recovery hopes drove risk appetite across both equities and volatility markets. Asian overnight action reinforced this theme with KOSPI rebounding +7.68% to β‚©8,059 after last week’s 8.30% selloff, while Shanghai Composite added +0.69% to 3,987 CNY. The VIX collapsed 12.04% to 18.92, signaling diminished fear premium as investors rotated back into growth plays.

The Setup

Cross-asset signals paint a mixed picture heading into today’s session. While equity volatility compression suggests renewed risk appetite, bond markets tell a different story with UST10Y falling 0.22% to 4.56 while German 10-year yields rose 0.33% to 3.06, creating a notable divergence. EUR/USD held flat at 1.15, but EURIBOR3M remains elevated at 2.31, matching its 52-week high. The disconnect between falling US yields and rising European rates amid stable FX suggests region-specific monetary policy expectations are driving flows rather than broad risk sentiment.

Today’s Watch

China’s May credit data β€” including new loans forecast at 540 billion yuan versus April’s contraction of 10 billion β€” is due Friday, June 13 at 09:00 local time, and will test whether Beijing’s stimulus measures are translating into lending growth. The sharp rebound in KOSPI suggests Asian markets are pricing in policy support, but credit numbers will determine if that optimism extends to mainland China exposure. CFTC positioning data, due June 12 at 19:30, will reveal whether last week’s tech selloff triggered major spec unwinding, particularly in Nasdaq 100 futures where specs held -14.9K net short positions. Focus remains on whether yesterday’s chip rally can sustain without fresh catalysts.

Market Movers

πŸ“ˆ Top Gainers

  • Tango Therapeutics, Inc. β€” +52.97%
  • Galaxy Digital Inc. β€” +21.36%
  • Cerebras Systems Inc. β€” +18.32%
  • MARA Holdings, Inc. β€” +11.85%
  • Oscar Health, Inc. β€” +11.75%
  • IDEAYA Biosciences, Inc. β€” +11.28%
  • Intel Corporation β€” +11.19%
  • Applied Optoelectronics, Inc. β€” +11.1%

πŸ“‰ Top Losers

  • Brady Corporation β€” -15.06%
  • Argan, Inc. β€” -10.76%
  • PT Telekomunikasi Indonesia, Tb β€” -9.46%
  • Fervo Energy Company β€” -8.76%
  • The Ensign Group, Inc. β€” -8.15%
  • Wix.com Ltd. β€” -7.98%
  • Polibeli Group Ltd β€” -7.23%
  • United Natural Foods, Inc. β€” -6.99%

Key Events Today

No major economic events scheduled.

Macro Dashboard

Indicator Level Ξ” d/d Ξ” w/w 52W Range Signal
VIX 18.92 -12.04% +17.88% 15.32–21.51 Neutral
EUR/USD 1.15 0.0% β€” β€” Neutral
EURIBOR 3M 2.31% 0.0% +1.76% 2.19–2.31 πŸ“ˆ Sticky
US 10Y 4.56% -0.22% +2.47% 4.44–4.57 πŸ“ˆ Bid
DE 10Y 3.06% +0.33% +1.66% 2.94–3.1 Neutral

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πŸ“° Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

Fed policy expectations and rate-sensitive market dynamics.

Rates, Central Banks & Mortgages

Federal Reserve policy outlook and rate environment driving strategic positioning.

AI/Tech Valuation Jitters

Market skepticism and selling pressure specifically tied to AI spending and tech valuations.

Trade & Diplomacy

Geopolitical developments affecting economic relationships and regional stability.

Macro: Labor, Consumers & Growth

Economic growth stories and structural economic developments across regions.

Other Market News

Additional headlines across various market themes.

This content is for informational purposes only and is not investment advice. Markets carry risk. Do your own research.