📊 Can Tech Keep The Rally Alive?

Good Morning Investors,

Semiconductors and broader technology indices once again carried the market higher, powered by upbeat spending signals from hyperscalers and a still robust capex outlook. Participation remains narrow, and several analysts warn that underlying breadth is weakening as cyclicals and resource linked names continue to lag. Rare earth miners were among the hardest hit after renewed tariff and trade headlines weighed on sentiment across the materials complex.

Mixed Federal Reserve commentary and uncertainty over a December rate cut have added to volatility, while an unresolved government funding debate and tariff discussions threaten to pressure smaller firms’ margins and financing costs.

Selectivity remains essential. AI aligned tech and biotech segments tied to near term earnings catalysts still hold relative strength, while resource and manufacturing names may face additional headwinds until policy visibility and market breadth improve.

Matthias Schneider
Editor at Analytica Investor