Market Musings 200424: Tech profit-taking, Metals lead
Market Musings 200424: Tech profit-taking, Metals lead
Podcast: Summarising the current impact of Israel-Gaza-Iran tensions on financial marketsReport: BNPP WM Equity Focus April 2024Don't assume that bonds always hedge stocks... (from Bank of America)
1. US mega-cap tech profit-taking correction finally starts
On Friday, pre-results Nvidia led profit-taking in 2024's high-flying tech names including Super Micro Computer and AMD.
Other tech-related names hard-hit: META Meta and NFLX Netflix.
This leaves the QQQ Nasdaq 100 ETF up less than 6% for the year to date.
Source: tradingview.com
2. In contrast, US value sectors Energy and Financials rose
Despite the Brent crude oil price easing back to $87/barrel post the limited Israeli riposte to the recent Iranian missile and drone strike, XLE Energy rebounded modestly and continues to post strong year-to-date performance at +12%.
XLF Financials (banks + insurance) also rebounded after dipping post poor guidance from banking heavyweight JPM JP Morgan, offset by better results from the likes of GS Goldman Sachs and MS Morgan Stanley.
Source: tradingview.com
3. The VIX volatility index spikes, but still far below 2023's peaks
The reaction...