Global Markets, AI Debt Concerns, Energy Stock Ideas 10/19/26

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Brian Sullivan (1:06)

The chips are up with one of the world's most important sectors on pace to break an eight day losing streak. Walk out of Power Lunch everybody. Hope you're having a great Monday. After a painful nearly two week long sell off, semiconductors are on the mend, and the company at the center of some of the AI debt fears, losing its early gains even after a big bank tells clients to buy core weave. Also higher oil, still above 100 bucks a barrel. But what happens now? We have two key voices for you, Dan Juergen and Goldman Sachs' Neil Mehta, both here.

Kelly Evans (1:38)

France has been gripped by its worst urban violence in years following nationwide protests over fuel prices, education and the rising cost of living. Yields in France, the United Kingdom, Spain and Germany, all higher. Ruchir Sharma, the chairman of Rockefeller International is here with more today.

Brian Sullivan (1:56)

All right folks, there's a lot going on, but the big market story to start the week is the continued worries around AI and AI spending and debt levels.

We do start the week with just a touch of good news for you. The NASDAQ 100 is rebounding right now. Inside the NASDAQ, semiconductors may be the group to watch anywhere in the world. The SMH right now is seeing some buyers come in. This after eight straight days of losses, AMD, NVIDIA, Taiwan Semi, they're all higher. Heading into today, like we said, it was a nearly two-week long win-losing streak, by the way, one where the SMH was down nearly 15 percent in that time. This adding to what has been a lot of selling coming into today.

But as of today, at least right now, the buyers, they are back. So let's talk about it all, what people are buying, what they're selling. Joining us, the perfect guest, Robinhood Chief Investment Officer, Stephanie Guild. How was that for an intro, Stephanie?

Stephanie Guild (2:54)

It's amazing.

Brian Sullivan (2:54)

Because you see the data, you can see what your clients, Robinhood's millions of customers and clients are buying, and what they are selling.

What were they doing? What are they doing?

Stephanie Guild (3:06)

They're actually, over the past week, they have been buying the diff that we had.

If you think about the AI trade, it's been pretty grindy since June. But this past week, they have been going into Micron, buying Nebius, buying the things that have been under pressure, and I think part of a broader deleveraging, selling consumer names. That's interesting because consumer names haven't been that strong this year, but selling the Netflix and the Nikes.

Brian Sullivan (3:35)

Well, I would assume, I'm guessing, if they're selling Netflix and Nike, I think Walmart also they were selling.

Some of these are losers. So maybe they're selling for tax loss reasons ahead of filing their taxes. I don't know. But we had a power pole, Kelly, I think last week, right? We asked people, you buy and are selling the AI dip. And I think most people, not by a lot, it was close, but it was more buyers than sellers. So your data would seem to confirm that.

Stephanie Guild (4:00)

It does, yeah. And I think that's pretty normal for their behavior because they will buy on those dips and the things that they truly believe in. I think the selling of the consumer names is actually not aligned with some of their behavior because they do tend to look for opportunities there as well.