PostsCan the rotation market sustain after the tech pullback?
$Invesco QQQ Trust(QQQ.US) $Microsoft(MSFT.US) $Tesla(TSLA.US)
Friday, the U.S. stock market is about to open. Last night, both the S&P 500 and the Dow hit record highs (S&P closed at 6903, up 0.21%; the Dow surged 1.34% to 48704), while the Nasdaq dipped slightly by 0.25% to 23593.
After the Fed unexpectedly cut rates on Wednesday, funds rotated from high-valuation tech stocks to cyclical and value stocks. Oracle's earnings plunged 12%+, dragging down the AI sector (Nvidia, Broadcom, and other chip stocks collectively fell).
However, overall market optimism rebounded to 44.3%, above the historical average.
Today's trend forecast: Volatile but slightly bullish, beware of selling pressure at the close. Opening expectations: Futures show mixed signals, with Dow futures slightly down at 5:30 AM ET, Nasdaq futures up 0.1%, and S&P futures flat.
The rotation continues, with cyclical stocks (e.g., Visa up 6.5%, Nike up 3%) likely leading gains, and the Dow poised to hit new highs.
Risks: Tech pressure remains, Oracle's shadow + AI ROI concerns may trigger further pullbacks; rising inflation (positively correlated stocks/bonds) increases volatility.
Chicago Fed's Goolsbee warned against premature rate cuts, short-term rates may stabilize.
Opportunities: Defensive real estate stocks (e.g., Healthpeak, Crown Castle) benefit from 2026 rate cut expectations. Tech valuations have dropped 7% (Nvidia led with a 12.6% decline), buy the dip.
Costco's Q1 earnings today, if exceeding expectations, may boost consumer stocks.
Overall, the S&P is up 16% in 2025, December may close slightly higher (+2.46% MTD), but Wall Street warns: valuation bubbles + aging bull market, future decade returns may be bleak.
Before the weekend, light positions and watch for CPI data. What's your take on U.S. stocks today? Tech rebound or continued rotation?
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
