Morning Juice – US Session Prep (17th July)

Sentiment
Nasdaq futures fell sharply as the global selloff in chipmakers gathered pace, with investors cutting exposure to one of the market’s most crowded and expensive leadership groups.
The concern is increasingly straightforward: AI-driven gains have been enormous, but valuations now depend on whether hyperscaler spending really does translate into durable returns and sustained chip demand over time.
The weakness spread across Asia, with Taiwanese equities falling into correction territory, while Europe held up better given its lower tech exposure.

The broader risk backdrop also stayed negative as renewed attacks and counterstrikes in the Middle East added to the pressure.
That kept Brent near $85 a barrel and reinforced concern that a worsening US-Iran conflict could further disrupt tanker traffic through the Strait of Hormuz.
Even so, Treasuries rallied, yields moved lower, and markets continued to reduce expectations for Fed hikes this year, while gold also bounced as investors looked for safer ground.

Docket
09:15 ET
US Industrial Production for June
Forecast: 0.2% | Prior: 0.1% | Range: 0.6% / 0.3%

10:00 ET
University of Michigan Survey July Prelim
Sentiment – Forecast: 51 | Prior: 49.5 | Range: 52 / 49
1-Year Inflation – Forecast: 4.5% | Prior: 4.6% | Range: 4.6% / 4.2%
5-Year Inflation – Forecast: 3.3% | Prior: 3.3% | Range: 3.5% / 3.1%

Good luck, and have a good weekend!