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Overnight, the three major U.S. stock indexes all closed lower, with the Dow ending its five-day winning streak. The overall decline was limited, merely a short-term profit-taking digestion, with no panic selling pressure. The market showed a particularly clear structural divergence, not an overall weakening. Within tech stocks, there was a severe split between gains and losses. The storage chip sector was the most abnormal, opening lower and then rising before still falling broadly. Western Digital led the decline, with SanDisk and SK Hynix weakening simultaneously, while only Seagate closed slightly higher. Other chip sectors were relatively strong, with ARM, Qualcomm, AMD, and TSMC all rising, and Nvidia and Intel making slight adjustments. The AI application sector was the biggest weak spot overnight, with sentiment cooling rapidly and many core stocks plunging. Datadog and Applovin fell over 19%, showing clear signs of short-term capital flight. 🚀 SpaceX Extreme Negative News Reversal Rally The previous day, the stock plummeted over 13%, compounded by a trillion-level lock-up release, with the market unanimously bearish. However, on the day of the release, it surged over 6% against the trend, with market cap returning above 1.5 trillion and trading volume hitting a one-and-a-half-month high. Core logic behind the reversal: - Negative news was priced in early: The previous day’s plunge fully digested the lock-up pressure, releasing selling pressure in advance - Shorts forced to cover: High short positions were wrong-footed, passive buying pushed the stock price up - Strong institutional support: Multiple investment banks raised target prices and maintained buy ratings - Retail investors eagerly bottom-fished: Opening buy volume far exceeded daily averages Note: This is only the first round of lock-up releases; there will be large-scale releases at the end of this year and next year, so the rally is only a short-term sentiment recovery. Additionally, SpaceX’s joint $16.8 billion Texas superchip factory with Tesla is underway, providing ongoing hardware sector catalysts. 📰 Overnight Key News Highlights - Hormuz Strait agreement not reached; U.S. continues negotiations, supporting oil prices sentimentally - U.S. plans to delay polysilicon tariffs, setting a transition period, benefiting the domestic photovoltaic import supply chain - High-end memory shortage; Nvidia plans to reduce new chip memory specifications - OpenAI opens unlimited free text chat for users, countersues Apple for infringement claims - U.S. introduces new policies cracking down on birth tourism and tightening birthright citizenship, with legal battles expected - World’s first mRNA flu vaccine approved, accelerating sector commercialization - Trump frequently liaises with new Fed chair; upcoming monetary policy is worth watching In summary, the core of the overnight market was a trade on expectation gaps. The widely bearish negative news materialized but failed to trigger a sell-off, even sparking a reversal rally. Continue to closely monitor the tech sector and the follow-up performance of stocks with lock-up releases. $SPCX $SKHY $WDC