Weekly Recap | CHPS.US -3.22%, AI spending fears drive the sell-off

The Week

CHPS.US fell 3.22% this week to close at $75.279. The S&P 500 lost 0.47%, leaving the ETF about 2.75 percentage points behind. The week traced out a rise-and-fade: it opened Monday at $80.82, the week’s high and its only spell above $80, then slid lower day by day. Thursday’s low of $74.6 marked the weakest point, and Friday spent the session in a narrow $74.87 to $76.13 range before settling at $75.279. The weekly range was 7.7%, with volume concentrated on Thursday’s sell-off and thinning out on Friday.

Sector News

The dominant theme this week was AI spending anxiety. A tech sell-off led by Meta and Nvidia accelerated on Thursday, with steep one-day drops in AMD, Intel, Marvell and Micron, and put options across those names surging several-fold to more than 1,000% intraday. Texas Instruments reported Q3 results: revenue of $6.06 billion, net income of $2.41 billion and EPS of $2.62. Rosenblatt, Stifel and Freedom Broker maintained or lifted buy ratings, with Stifel at $370 and Rosenblatt at $360. Japan’s Nikkei fell sharply on Friday as the Wall Street tech rout spilled into Asian trading.

The Week Ahead

The coming week opens a key AI earnings window, with more major AI plays due to report. On 26 October, the Dallas Fed manufacturing business activity index lands, with a prior reading of 9.8. On 27 October, durable goods orders, FHFA house prices, Case Shiller 20-city home prices, new home sales, the Richmond Fed composite index and consumer confidence are all due; durable goods orders have a prior of -0.1 against a 1.5 forecast, and consumer confidence a prior of 81.9 against a consensus of 81. These will shape expectations for semiconductor downstream demand.

In Short

The week’s tension sits between broker views that remain constructive on chip names such as Texas Instruments and Micron, and a market mood weighed down by AI spending fears that triggered a broad-based tech sell-off. The latest daily flows point to mixed positioning, with net buying by medium and small orders against net selling by small orders. CHPS.US finished the week below its 20-day moving average, with the 60-day line near $84.659 still some distance away. The next test is whether next week’s AI earnings turn this pullback into a one-off flush or a deeper repricing.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.