The US stock market is witnessing a reversal of the broadening trade, with the S&P 500 down 15 basis points and the iShares Russell 2000 (IWM) underperforming the PowerShares QQQ ETF by 1.7%. Meanwhile, the UBS Pure US Growth (UBXXMAG7) basket is seeing gains, led by Magellan Health (MGLN), which is set to report earnings next week.

In the semiconductor space, UBS Pure US Growth (UBXXSEMA) is higher by 80 basis points on news that China is encouraging its tech firms to prepare orders for NVIDIA’s (NVDA) H200 chips. However, excluding AI-related stocks, the UBS Pure US Growth (UBXXSEMX) is down 3.2%, following a disappointing outlook from Intel (INTC) due to supply issues. Intel’s stock has fallen by 16% on Friday, erasing its rally from earlier in the week.

In geopolitical news, President Trump’s attention has shifted from Greenland to Iran, with reports of a “big flotilla” from the US Navy heading in that direction. Energy and Precious Metals (E&P) stocks are up 1.1%, while Defence Primes (UBXXPRME) are down 30 basis points.

Looking ahead to the week, earnings highlights include reports from cyclical bellwether Caterpillar (CAT), AI Power proxy GE Ventures (GEV), and AI Adoption darling Charter Communications (CHRW). Macro events of interest include the Federal Open Market Committee (FOMC) meeting, Producer Price Index (PPI), and Conference Board Consumer Confidence.