🎙️Spencer’s Morning Market Report

Good morning, traders! We're walking into Thursday with a market that looks more defensive than confident. Inflation concerns, weakness in artificial intelligence stocks, and geopolitical uncertainty are giving investors plenty to think about. This isn't necessarily a market to avoid, but it's definitely one where patience matters more than enthusiasm.

Technology deserves particular attention. According to the Associated Press, Wednesday's selling hit AI-related companies particularly hard, with Nvidia and Advanced Micro Devices among the notable decliners. That matters because semiconductor enthusiasm has been an important part of the broader growth-stock narrative. When investors begin questioning expensive growth expectations, selling pressure can spread beyond individual companies. I'll be watching whether buyers start showing renewed interest or continue treating rallies cautiously.

The economic picture adds another complication. Thursday's economic-calendar figures indicate September producer prices increased 0.55% month over month, above the listed 0.4% forecast. Meanwhile, retail sales increased 0.25%, below the calendar's 1.2% expectation. Those figures suggest a potentially uncomfortable combination: persistent pricing pressure and softer consumer spending. The calendar is not an official government release, so these readings deserve confirmation. Axios also reported that Federal Reserve Governor Christopher Waller has emphasized a gradual approach to potential rate increases. Higher borrowing costs could create additional challenges for rate-sensitive growth companies.

Then there's energy. Associated Press reporting has connected Middle East tensions involving Iran with higher oil prices and investor uncertainty. Rising energy costs could benefit certain producers while squeezing transportation companies and other fuel-intensive businesses. My read: Thursday calls for a selective approach. I want evidence that buyers can support quality companies before getting excited about a broader recovery.

☀️ Morning Snapshot

• AI under pressure: AP reported notable Wednesday weakness in Nvidia and AMD, raising questions about near-term technology sentiment.
• Inflation concerns: Thursday's economic calendar indicates September producer-price growth exceeded expectations, pending official confirmation.
• Consumer spending: The same calendar suggests retail sales disappointed relative to forecasts.
• Fed uncertainty: Axios reports policymakers are considering a gradual approach to potential rate increases.
• Energy risks: Middle East tensions remain an important consideration for oil-sensitive industries.

⌖ On My Radar

• NVDA: Watch whether buyers return after Wednesday's reported selling. Check for stabilization and constructive price action.
• AMD: Another semiconductor name worth monitoring following AP's report of substantial weakness. Look for evidence of support rather than assuming a rebound.
• Semiconductors: Investigate whether weakness remains concentrated in AI leaders or spreads across the industry.
• Energy producers: Monitor potential relative strength if geopolitical concerns continue supporting oil prices.
• Consumer discretionary: Watch how retailers and consumer-sensitive companies respond to the reported spending figures.

📈 What I Want to See Next

• Technology stabilization: Check whether NVDA and AMD can establish support and sustain buying interest.
• Economic confirmation: Verify Thursday's PPI and retail-sales readings against official government releases.
• Fed expectations: Monitor Treasury yields and upcoming Federal Reserve commentary for changes in rate expectations.
• Energy developments: Watch oil-price direction and credible updates regarding Middle East tensions.

🎯 Spencer's Call

🟡 YELLOW — BE SELECTIVE

I'm interested in opportunities, but I don't see a compelling reason to force trades while inflation concerns and technology weakness remain unresolved.

Let the market demonstrate where buyers are willing to step up. Strong companies and improving charts deserve attention; weak setups deserve patience.

Keep the watchlist focused, the expectations realistic, and the coffee within reach.

Have a great Thursday, traders!