There are some very interesting cross-currents in the market Wednesday morning in reaction to various news events.
The settlement of the long running dispute between Qualcomm (QCOM) and Apple (AAPL) , along with some strategic moves by Intel (INTC) in the 5G business has caused semiconductors to roar higher. FAANG names are going along for the ride, although the gap up open in the S&P 500 was sold very hard and fast.
In addition to the reversal in the indices, there is a bloodbath of selling in medical-related names, including biotechnology, and severe pressure on the cloud-related stocks that have been momentum favorites.
The pressure on medical and biotechnology appears to be primarily a function of concern about "Medicare for All." This is a hot topic in the early political campaigns. Although most pundits believe that such a program passing is highly unlikely, it is causing nervousness as even UnitedHealth Group (UNH) mentioned it on its conference call.
Names such as Aimmune Therapeutics (AIMT) , which is one of my longer-term favorites, is hitting new lows as it is being sold on the Medicare for All talk and without regard to its individual merits.
I sold down half my position in Qualcomm and will be interested in bottom-fishing the biotechnology group at some point, but I'm not doing much yet.