Insights

Major US indices corrected on Thursday with the Nasdaq leading markets lower (-1.08%) while the Dow and S&P 500 gave up -86 bps and -60bps respectively. Under the surface, stock level breadth and sector performance skewed positive as losses were concentrated in Tech (XLK) and Comm. Services (XLC).

All sectors were lower in absolute terms with Technology (XLK), Comm. Services (XLC) and Consumer Discretionary (XLY) outperforming the benchmark S&P 500 while commodities exposures brought up the rear.

As of this writing Wednesday’s futures are generally positive with the S&P 500 and Nasdaq up slightly and the Russell 2000 showing a small decline. 

XLI, XLF, XLB and XLE are near-term oversold. 

Equities gave back some recent gains on a day where NVDA stock posted new all-time highs on a gain > 9%.  That drove leadership for the Nasdaq which slipped -18bps while the S&P 500 was off -74bp and the Dow brought up the rear down -1.53% as the broad market responded to hawkish comments in

Equities paused their advance on Wednesday with the Dow leading shares lower off 51bps while the S&P 500 gave up 27bps and the Nasdaq trimmed 18bps ahead of NVDA’s earnings after the Bell. “Higher for Longer” was the general takeaway from the Fed.’s latest meeting minutes as strong earnings and economic data keep pressure on

With the S&P 500 now up 11.6% in 2024 with a forward earnings multiple >20x, valuation concerns are creeping in.  The Mag7 continue to pace leadership having added 24% YTD, with NVDA’s earnings coming after the bell and a likely pivotal point in the trend.