Key Takeaways Below, we take a closer look at AMD's weekly chart and apply technical analysis to identify critical price levels worth watching out for. Inverse Head and Shoulders Breakout AMD shares staged a dramatic breakout from an inverse head and shoulders pattern on Monday, laying the groundwork for follow-through buying. While the surge coincided with the relative strength index crossing into overbought territory, the indicator remains below peaks that preceded drawdowns in November 2021 and March 202 ...

Group 1: Semiconductor Industry - Advanced Micro Devices (AMD) shares increased by nearly 25% after announcing a significant partnership with OpenAI, which includes a long-term deal for AI chip purchases and potential equity acquisition [2][7] - Other companies in AI infrastructure, such as Monolithic Power Systems (MPWR) and Super Micro Computer (SMCI), saw their shares rise over 5% following the AMD and OpenAI announcement [3] Group 2: Electric Vehicle Industry - Tesla's stock rose by 5.5% amid speculation of an upcoming event that may introduce a lower-priced electric vehicle, aligning with previous comments about more affordable models being available in Q4 2025 [4] Group 3: Adtech Industry - AppLovin (APP) shares fell by 14% due to reports of a Securities and Exchange Commission investigation into its data collection practices, despite an overall increase of about 80% for the year 2025 [5][7] Group 4: Telecommunications Industry - Verizon (VZ) shares dropped by 5.1% following the appointment of Dan Schulman as the new CEO, who is set to lead the company through its acquisition of Frontier Communications [6]

Core Insights - AppLovin's shares experienced a significant decline of 14% following reports of a Securities and Exchange Commission (SEC) investigation into the company's data-collection practices after a whistleblower complaint [1][2][6] - Prior to this drop, AppLovin's stock had more than doubled in value throughout the year, reflecting strong investor sentiment and positive market performance [4][6] Company Performance - The stock price fell from approximately $683 at the end of last week to $587, marking a return to levels seen about a month ago [4] - Analysts at Wedbush raised their price target for AppLovin shares by $20 to $745, citing the company's exceptional growth and profit margins [5] Market Reaction - Investors were caught off guard by the sudden drop, especially after a positive report from a Wall Street analyst earlier in the day [2] - The SEC's investigation has raised concerns among investors, contrasting sharply with the company's recent addition to the S&P 500 and the overall positive sentiment surrounding its stock [4][6]

Core Viewpoint - Wall Street is underestimating the strength of the economy and setting low expectations for S&P 500 earnings growth, which is projected to slow to 6% in Q3 from 11% in Q2, but Goldman Sachs anticipates earnings growth will exceed these forecasts due to stronger sales and positive surprises from the "Magnificent 7" tech stocks [2][3][10]. Earnings Growth Expectations - Analysts predict that S&P 500 earnings growth will be lower than expected, with a consensus of 6% growth for Q3, down from 11% in Q2 [2][10]. - Goldman Sachs analysts believe that earnings growth will surpass this forecast, driven by stronger sales growth and the performance of the Magnificent 7 [3][5]. Economic Indicators - Goldman economists estimate that GDP grew by 2% in Q3, consistent with Q2 growth, despite Wall Street's conservative view of real sales growth slowing to 1% from 2.5% [5]. - The stabilization of the U.S. dollar in Q3 may have impacted sales growth, as the dollar's decline in the first half of the year had previously boosted international sales for S&P 500 companies [6]. Performance of the Magnificent 7 - The Magnificent 7, a group of major tech companies, is expected to drive earnings growth, although analysts forecast their earnings growth to be half as fast in Q3 compared to Q2 [7]. - Historically, the Magnificent 7 has exceeded expectations, suggesting potential for positive surprises in the current earnings season [7]. Analyst Sentiment - For the first time since Q4 2021, analysts have raised their S&P 500 earnings per share estimates by 0.1% during Q3, indicating increased confidence in earnings [9][10]. - Despite the overall optimism, Kostin warns that expectations for earnings revisions may be more modest this quarter due to a lack of significant changes in the economic outlook [11]. Tariff Impact - Tariffs are expected to pose a greater challenge for earnings this quarter, with customs duties totaling $93 billion, a 33% increase from Q2 [12]. - Corporate profit margins are likely to remain stable due to strategies like supplier changes and cost cuts, but substantial margin expansion in Q3 appears unlikely [12].

These days, a shoutout from OpenAI is all it takes to send stocks higher. ...

Core Insights - Analysts recommend buying Klarna stock, anticipating future gains as the company's business expands [1] - Klarna shares, initially priced at $40 during its IPO, are expected to recover towards their first trading session price of $52, having recently traded around $42.50 [2] Company Overview - Klarna, established in 2005, allows consumers to split purchases into four interest-free installments and has expanded into short-term loans and bank-like services [5] - The company currently serves 111 million consumers and 970,000 merchants, making it the largest player in the buy now, pay later (BNPL) sector [6] Market Potential - The BNPL sector is projected to approach $117 billion this year, indicating significant growth potential [6] - Analysts believe Klarna can gain customers by entering new geographic markets, adding retail partners, and enhancing newer products [7] Advertising Revenue Opportunities - Klarna's app and website may provide overlooked advertising revenue, with the digital advertising market estimated at $475 billion, surpassing the payment services market [8] - The company's marketing strategy leverages a high-intent customer base and various monetization models, including impression-based and cost-per-click [9] Analyst Ratings and Price Targets - Deutsche Bank, Wedbush, and Bank of America have initiated coverage on Klarna, issuing buy ratings with price targets of $48, $50, and $51 respectively [1][9]

Economic Indicators and Government Shutdown - The federal government shutdown is likely to delay the release of several economic indicators, including U.S. trade deficit data, weekly initial jobless claims, and wholesale inventories [1][3] - Despite the shutdown, the Federal Reserve is expected to continue its schedule, including the release of meeting minutes and participation from key officials [3][4] Corporate Earnings Reports - Key corporate earnings reports are anticipated from major companies such as Constellation Brands, PepsiCo, Delta Air Lines, and Levi Strauss, which could provide insights into the state of the American consumer [5][6][7] - Constellation Brands is expected to report declining sales due to concerns over tariffs and weak demand, while PepsiCo may face challenges from its Frito-Lay division and North American sales [6] - Delta Air Lines has reinstated its outlook and reported better-than-expected results, while Levi Strauss grew revenue in the prior quarter despite tariff pressures [7] Upcoming Events and Consumer Sentiment - Amazon is set to hold its Prime Big Deal Days sales event on October 7-8, which may impact consumer spending trends [7] - The University of Michigan's consumer sentiment report and the Fed's consumer credit report are also expected to be released, providing further insights into consumer behavior [4]

Group 1: Health Insurance Sector - Humana (HUM) shares surged nearly 11% after the company affirmed its outlook and provided insights into the quality ratings of its Medicare Advantage plans, leading to strong performance in the S&P 500 [4][9] - Other health insurers also experienced gains, with Centene (CNC) and Cigna (CI) rising by 5.1% and 4.7%, respectively, following Humana's positive update [4] Group 2: Technology Sector - Palantir Technologies (PLTR) shares fell 7.5% after reports indicated vulnerabilities in a battlefield communications network being developed by the company, leading to concerns about security [6][9] - Zebra Technologies (ZBRA) saw a 3% increase in shares after completing the acquisition of Elo Touch Solutions, which is expected to expand its addressable market [5] Group 3: Casino and Gaming Industry - Shares of casino operators declined as Tropical Cyclone Matmo posed a threat to Macau, a key gaming destination, with Las Vegas Sands (LVS) and Wynn Resorts (WYNN) both dropping over 7% [7] Group 4: Retail Sector - Nike (NKE) stock decreased by 3.5% despite reporting better-than-expected sales and profits for its fiscal first quarter, as the company warned of higher tariff costs and declining sales in its classic footwear lines [8]

Group 1 - The price of gold is on track to achieve its highest yearly return in nearly 50 years, with a significant surge this year, while silver and platinum have also seen substantial gains, with silver reaching its highest historical value and platinum outperforming gold [1][5][8] - The gains in precious metals reflect a global financial market characterized by policy uncertainty, inflation concerns, and a looming U.S. government shutdown, leading investors to seek safe-haven assets [2][4][8] - The Federal Reserve's potential interest rate cuts may further support demand for precious metals by reducing competition from income-generating assets [3][4] Group 2 - Gold has increased by 48% year-to-date, trading near $3,900 per troy ounce, while silver has gained approximately 65% and is trading near $48 per troy ounce, surpassing its 2011 peak [5][6] - Platinum has shown remarkable performance with a nearly 80% year-to-date return, trading around $1,600 per troy ounce, indicating strong demand across all three precious metals [6][8] - Mining companies have benefited from rising prices, with the Van Eck Gold Miners ETF (GDX) and Global X Silver Miners ETF (SIL) each gaining about 125% [6] Group 3 - Investment demand is a primary driver of the price increases in precious metals, but central banks have also increasingly turned to gold for reserve storage, with 90% of demand coming from investors, central banks, and jewelry [7][9] - Silver and platinum have industrial applications that support their demand, with silver used in electronics and platinum in catalytic converters for automobiles [9] - Current economic conditions suggest a potential stagflationary environment, which may further bolster the appeal of precious metals as a hedge against inflation and economic uncertainty [10]

Group 1 - The Magnificent 7 tech leaders, including Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta, and Tesla, have shown a resurgence after lagging behind the broader market for most of 2025 [1][5] - The Roundhill Magnificent Seven ETF (MAGS) is up nearly 20% year-to-date, outperforming the S&P 500's approximately 15% gain, and has more than doubled the benchmark index's performance in the third quarter [2] - Strong earnings, expectations of AI-driven growth, and easing interest rates have supported growth stocks, particularly those linked to AI, in the third quarter [2][4] Group 2 - Concerns about a potential bubble in AI have been raised, with notable figures like Jeff Bezos suggesting the existence of an "industrial bubble" that complicates the identification of future winners and losers [3] - Bank of America analysts noted that historical bubbles have typically burst due to central bank tightening, but no central bank has raised rates in the past two months [4] - Despite some cooling optimism about the stock market, investors remain heavily invested in growth stocks, even at high valuations [4] Group 3 - The resurgence of the Magnificent 7 is attributed to the recovery of major tech companies like Tesla and Apple, which had previously been underperforming [5] - Nvidia has been the biggest gainer of the year, with its stock rising steadily since April due to booming chip sales and easing trade policy headwinds [6] - Tesla's stock gained a third of its value in September, driven by a shift in focus towards its advancements in autonomous driving, robotics, and AI [7] Group 4 - Alphabet's stock rose about 15% in September following a significant legal victory, while Apple saw close to a 10% increase due to strong demand for its latest iPhone 17 [8] - Market watchers are cautiously optimistic about the potential for further gains in equities, citing expectations of lower rates and strong corporate profits [9] - The Magnificent 7 has recently overtaken the S&P 500 to reclaim its lead, with Tesla, Alphabet, and Apple being the largest contributors to this recent performance [9]