PLTR is bucking today's selloff
Investors are rotating out of the tech sector to cyclical stocks that stand to benefit from interest rate cuts, which traders hope will come in September. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is among the names impacted by this rotation, brushing off better-than-expected second-quarter results. Meanwhile, Palantir Technologies Inc (NYSE:PLTR) seems to be bucking the selloff.
TSM was last seen 3.1% lower to trade at $165.82, after yesterday marking its biggest single-day percentage loss since March 2020. Shares are pulling back from their July 11, record high of $193.47, and are now pacing for their first close below the 40-day moving average since May. TSM is down 59.9% so far this year.
PLTR is up 1.6% to trade at $28.67, however, after notching a three-year high of $29.83 earlier. The security also sports a 68.2% year-to-date lead, and is trading above multiple long- and short-term trendlines.
The option pits are buzzing, with 259,000 calls and 206,000 puts traded for TSM so far today, which is four times the intraday average volume. For PLTR, it's 387,000 calls and 135,00 puts across the tape, or double the volume that is typically seen at this point. The most active contract for the latter is the July 175 call, and the 30 call in that series for the latter.