Welcome back to Traders War Room! Markets are riding an AI wave today after OpenAI’s latest funding round lit a fire under tech names. The Nasdaq is up, led by a burst in semiconductor gains. Nvidia, Broadcom, and the AI infrastructure stocks are catching a bid. Meanwhile, the S&P and Dow are climbing despite overhang from budget fights and soft economic data.

But this rally may be fragile. Some on Wall Street are warning the AI euphoria could run out of steam quickly. The question for traders now: how far does this run before a reversal sets in?

Here’s how to play it:

  • Lean into the tech leaders that show strength now. If Nvidia or related AI names can sustain this push, momentum could stretch.
  • Use defensive tools. If you hold long, consider collars, trailing stops, or hedges to protect gains if sentiment turns.
  • Watch rotation signals. A pullback in tech could shift flows into defensives, financials, or energy.
  • Trade tight breakouts. In volatility zones, entries on consolidation breaks with confirming volume may give you the edge you need.

Bottom line: the AI narrative is fueling today’s market, but the smart money is watching for cracks. Trade with conviction, but manage your risk.

Stay nimble — when momentum fades, reversals can hit fast.

Happy Trading!