Sep 30, 2026 · 20 min
Tech strength masks widening market weakness
Stocks Mixed Amid Rising Yields, Oil Prices; HPE, Snowflake, Microsoft In Focus
The session shows how rising yields and oil prices are rewarding select technology leaders while pressuring small caps and broader indexes.
- 1Technology, software, semiconductor, and mega-cap stocks outperformed as small caps and equal-weighted indexes weakened.
- 2Hewlett Packard Enterprise broke out on networking guidance and a major AMD order, while Snowflake and Microsoft offered developing setups.
- 3Micron delivered strong earnings and raised guidance, but its muted reaction showed how much growth investors had already priced in.
Don't miss
Micron Technology’s strong earnings beat and raised guidance draw a muted initial reaction because investors already expected substantial growth.
The brief
Alexis Garcia and Ed Carson assess a mixed close shaped by cooler inflation data, rising yields, and oil prices, with technology and mega-cap stocks diverging from weaker broader indexes.
The NASDAQ’s constructive action rests on chips, software, biotech, and mega-cap strength, while higher borrowing costs continue to pressure small caps and cyclical companies.
Hewlett Packard Enterprise broke out of a cup-with-handle base after strong networking guidance and a major AMD order, though its post-breakout action remains important.
Snowflake’s range-bound trading and Microsoft’s nearby actionable level frame two different setup questions, while software and semiconductor ETFs remain strong but vulnerable to pullbacks.
Micron’s strong beat and raised guidance produced a muted initial reaction, underscoring how high expectations can blunt even impressive results.
What was said on this episode
24 statements · 14 positive · 8 negative · 1 mixed · 1 neutral
Rising Treasury yields are a major reason the market has sold off.
“treasury yields are a huge factor in this. That one has been a major reason for it, for why the market has been selling off.”
Listen at 2:34
Divided markets are more difficult for investors to navigate.
“divided markets are just more difficult because you just never know what you're going to get”
Listen at 2:52
Choppy markets can lure active investors into trades.
“choppy markets can lure people in and it lures me in at times and you don't want to ignore it because there are times, well, maybe this is the moment”
Listen at 4:59
Choppy markets can be especially harmful for active investors.
“it can often be the worst market for active investors”
Listen at 5:29
The Nasdaq currently appears technically strong.
“The NASDAQ still looks pretty good.”
Listen at 6:02
The Nasdaq is forming a high-handle pattern within a long consolidation.
“This is basically sort of a high-handle handle to this long consolidation.”
Listen at 6:14
High interest rates and fuel costs are hurting cyclical companies.
“these interest rates are really, punishing both and the fuel costs are punishing”
Listen at 7:21
Treasury yields are currently rising.
“the Treasury yields are rising”
Listen at 8:07
Long-term Treasury yields appear driven by factors other than inflation.
“it just seems like the long end is doing things that are not particularly related to inflation”
Listen at 8:31
Long-term yield increases pressure financial markets and the economy.
“this is a real pressure for the market. It's a real pressure for the economy”
Listen at 8:38
The software ETF may be forming another actionable setup.
“So maybe this is setting up again.”
Listen at 9:25
Ed recommends using approximately $109 as an early IGV entry.
“I would probably use that as sort of an early entry into a new base.”
Listen at 9:52
Many chip and AI hardware stocks show similar technical setups.
“A lot of chip and AI hardware stocks look like this.”
Listen at 11:05
HPE is currently showing strong stock performance.
“this is a strong performance here for sure”
Listen at 12:33
Snowflake found technical support at its 50-day moving average.
“It found support of its 50-day line.”
Listen at 13:08
Ed recommends buying Snowflake at or just above its recent high.
“I think today's high would be where you would have been or just above it would be where you'd want to be buying.”
Listen at 13:59
The anticipated major AI tailwind for cybersecurity stocks has not yet materialized.
“there's been a lot of rallying in anticipation that there'll be this big AI tailwind. And it hasn't happened yet, really.”
Listen at 15:36
Cybersecurity stocks are currently performing strongly.
“cybersecurity is doing very well”
Listen at 15:52
Microsoft is an attractive mega-cap software stock currently.
“A mega cap software stock sounds pretty good right now. And that's what you've got here.”
Listen at 16:33
Microsoft's recent growth has been solid.
“The growth has been pretty solid lately”
Listen at 16:49
Microsoft revenue growth has recently been in the high teens.
“revenue growth has been in the high teens”
Listen at 16:54
Ed considers Microsoft actionable just above approximately $519.
“I think getting just above that area would be actionable”
Listen at 17:17
Micron's results may influence other memory stocks and the broader AI trade.
“it'll be interesting to see how that applies to other memory stocks. And then just the AI trade as general.”
Listen at 18:21
Micron and Google's developments might boost technology futures overnight.
“those are a couple of things that might give futures, at least the tech futures, a bit of a boost overnight.”
Listen at 18:57
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.