Earnings season is here again, you can try a small position in TSLA, but be careful with NVDA.

Overnight, the U.S. stock market continued its volatile pattern amid multiple intertwined factors. Last night, Powell sent hawkish signals, clearly stating that rate cut expectations in the short term were dashed. Coupled with the lingering impact of U.S. semiconductor export restrictions on China, the three major indices closed lower collectively. The S&P 500 exhibited a typical news-driven intraday trend—narrow fluctuations in the morning session, followed by a decline in the afternoon due to tightening monetary policy expectations. Although it attempted a late-session recovery, it ultimately failed to hold above the 10-day moving average. Volume indicators showed a relatively restrained immediate market reaction to monetary policy, with investor attention shifting toward political variables that could reshape the market landscape. Potential adjustments to Trump's policy stance have become a new focal point.

The semiconductor sector extended its weak adjustment trend, with industry leader NVIDIA (NVDA) hitting an intraday low of 10%. Despite a technical rebound pushing the stock back to a key support level, considering geopolitical risks and potential tariff pressures facing the sector, there remains significant room for further downside adjustments. Although CEO Jensen Huang's recent visit to China may bring short-term sentiment relief, the overall sector should still maintain a cautious outlook under substantive policy constraints.

The EV sector showed divergence, with Tesla (TSLA) entering a phase of balance between bulls and bears after digesting consecutive negative news. Considering the broader market's technical patterns and holiday effects, some capital opted for early positioning ahead of the Easter holiday. However, given overseas market uncertainties during the break, mainstream funds remained cautious with light positions. From a trading strategy perspective, most institutions chose to stay on the sidelines, awaiting clearer post-holiday industrial policies and geopolitical developments before making directional bets. In the current market environment, risk management has gained prominence, with investors widely tightening stop-loss levels to hedge against potential holiday volatility spillovers.

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