Yield Curve Steepening Squeezes Tech as Semis Test Support

The tape was dominated by a persistent 'sell the rip' mentality in mega-cap tech. NVDA struggled to hold its morning gap, eventually sliding below the $125 pivot as sellers capitalized on the lack of immediate catalysts. The rotation into financials remained the primary theme, with JPM leading the charge as net interest margin expansion narratives continue to draw institutional flow away from high-beta growth.

Price action in the Nasdaq 100 was characterized by a series of lower highs, failing to reclaim the VWAP after the London close. Traders noted a significant increase in put buying across the semiconductor complex, suggesting a hedge-heavy posture going into the inflation data. AMD provided a brief scalp opportunity off the $160 psychological level, but the lack of follow-through volume indicates a market in 'wait-and-see' mode.

Energy names saw a late-day bid as geopolitical tensions flickered, providing a tailwind for the XLE while the broader indices churned. For those trading the intraday swings, the key was identifying the lack of conviction in the bounce attempts; the tape remained heavy throughout the final hour. Watch for a volatility expansion at tomorrow's open if the macro data misses to the upside.

Today's edge: Today’s edge: Spotting the institutional pivot into financials required monitoring StocksLeak for unusual block trade activity before the sector rotation hit the tape.