Global equities weakened as AI-linked selling pressure hit US technology shares and credit spreads widened for selected names ahead of megacap earnings. The Philadelphia semiconductor index fell -3.21% over a third consecutive week, despite a +0.44% rise on Friday, and the drag fed through to broader benchmarks with the NASDAQ down -0.71% (-0.21% Friday) and the S&P 500 off -0.47% (-0.52% Friday). Among individual movers, CoreWeave dropped -11.65% (-2.46% Friday) while its 5yr CDS widened by +19bps to 1146bps, and Meta fell -9.40% (-0.96% Friday) as its 5yr CDS rose +22bps to 127bps.
Europe also slipped, with the CAC 40 down -2.19% and STOXX Banks down -5.10%, while the STOXX 600 declined -1.39% (-0.31% Friday). Asia was mixed: the KOSPI fell -0.90%, alongside declines in the Nikkei (-0.34%), CSI 300 (-0.47%) and Shanghai Composite (-0.09%), but the Hang Seng gained +0.51% and the S&P/ASX 200 rose +0.17%. US index futures were firmer, with S&P 500 futures up +0.20% and Nasdaq futures up +0.24%, as markets awaited Alphabet and Microsoft on Wednesday and Amazon on Thursday, alongside the FOMC.
Strategic Options Positioning During Earnings Weeks
Let’s quickly run a quick search or rely on well-known standard derivative metrics (e.g., implied movements of 4-6% for Big Tech earnings, VIX elevation above 18-20 during dual FOMC/earnings weeks).
