All articles tagged with #megacaps
The US stock market is showing increased concentration in a few large technology and growth stocks, notably the 'Magnificent Seven,' which now make up a significant portion of the S&P 500's value. Upcoming earnings reports from these giants could impact the market, which is already at record highs and heavily reliant on these few stocks, raising concerns about vulnerability if these stocks falter.
The U.S. stock market rally is showing signs of broadening beyond the mega-cap growth and technology companies, fueling investor hopes for a year-end rally. The S&P 500 has risen over 8% in November, driven by falling Treasury yields and cooling inflation readings. Recent market strength includes gains in areas that have lagged this year, with about 55% of the S&P 500 trading above their 200-day moving averages. The equal-weight S&P 500 index has outperformed the market-cap weighted index, and struggling small-cap and bank stocks have seen a boost. However, there are concerns that the rally may not be sustained, as further readings on consumer confidence and inflation could impact Treasury yields, and some investors may be reluctant to chase the rally as the year comes to a close.
Palo Alto Networks, Moderna, Nvidia, Tesla, and Broadcom were the top gainers in the S&P 500 index on Monday. The S&P 500 rose 0.7% while the Nasdaq jumped 1.6%. Palo Alto Networks stock surged after reporting better-than-expected earnings, Moderna stock rose due to rising Covid cases and a new deal, Nvidia stock rebounded after breaking a short-term trendline, Tesla stock snapped a losing streak, and Broadcom stock moved closer to its 50-day line. Both indices remain below their 50-day moving averages and the market is still in a correction.
Dow Jones futures rose slightly early Thursday, while S&P 500 futures advanced modestly and Nasdaq futures jumped. The stock market rally attempt suffered a nasty downside reversal Wednesday following the Fed meeting and comments by Treasury Secretary Janet Yellen. Bank stocks struggled, notably First Republic Bancorp (FRC) and PacWest Bancorp (PACW). The market rally attempt has relied heavily on six megacaps: Apple stock, Microsoft (MSFT), Google parent Alphabet (GOOGL), Tesla (TSLA), Meta Platforms (META) and Nvidia (NVDA). The SEC issued a Wells notice to Coinbase (COIN), a formal warning to the cryptocurrency exchange that the regulator may take "enforcement actions" for potential violations of securities laws.
Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally attempt suffered a nasty downside reversal Wednesday following the Fed meeting. KB Home and Coinbase were key movers late. The market rally attempt has relied heavily on six megacaps: Apple stock, Microsoft (MSFT), Google parent Alphabet (GOOGL), Tesla (TSLA), Meta Platforms (META) and Nvidia (NVDA). Bank stocks struggled, notably First Republic Bancorp (FRC) and PacWest Bancorp (PACW). The SEC issued a Wells notice to Coinbase (COIN), a formal warning to the cryptocurrency exchange that the regulator may take "enforcement actions" for potential violations of securities laws.