Palantir $PLTR was up 7% after market as they beat earnings estimates.
$PLTR Q2 visualized: • Revenue: $1.94B (+93%) • Gross profit: $1.64B (+101%) • Cost of revenue: $0.29B (+254%) • Net income: $1.06B (+225%) Source: Russ Faigen
The market broadening in one chart
The S&P 500 Equal-weight index $SPY just hit new all-time high while the Nasdaq 100 $NDX is still over 8% below highs. Source: Bloomberg, RBC
S&P 500 profit margins spiked to 16.7% in Q2, which is by far their highest level in history.
“Profit margins are probably the most mean-reverting series in finance, and if profit margins don't mean revert, then something has gone badly wrong with capitalism. If high profits don't attract competition, there's something wrong with the system.” - Jeremy Grantham Charlie Bilello
Jeff Bezos sold $4,073,700,000 worth in Amazon $AMZN stock today, his first sale of stock in over a year.
Source: Trend Spider
Leverage is unwinding across Asia
The borrowing that fueled this year's rally is now accelerating the selloff. In South Korea, margin debt has fallen by $4 billion since June, while leveraged ETF assets have plunged 70% (from $53 billion to $16 billion). Retail cash set aside for stock purchases has dropped 23%, and many Samsung and SK Hynix investors are now sitting on losses. The deleveraging is spreading across the region, with margin loans also falling sharply in China and Taiwan. As leveraged positions are unwound, forced selling is amplifying market volatility. Source: Global Markets Investor
The Nasdaq just posted its worst July in 22 years
The Nasdaq-100 fell 6.6% in July, while semiconductor stocks led the decline, with SOXX down 22.1%, its worst month since 2002. Unlike previous selloffs driven by a single catalyst, this correction reflects concerns over AI valuations, crowded positioning, and rising Chinese competition. Yet investors continue to buy the theme: Goldman Sachs estimates nearly $13 billion flowed into semiconductor ETFs during the decline. Meanwhile, gains in the equal-weight S&P 500 and software stocks suggest capital is rotating rather than leaving equities. The correction has reduced leverage and valuations, but conviction in the long-term AI story remains intact. Source: Bull Theory
Indian investors holdings in U.S. stocks hit all time high
Holdings are up +1500% since May 2016 Source: FRED
SK Hynix last 5 days "price discovery"
8/3: -11.47% 7/31: +26.42% 7/30: -3.62% 7/29: -7.54% 7/28: -16.16% Source: zerohedge
