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Wall Street Braces as Tech Rout Deepens

US markets looked set for another turbulent session as futures for the S&P 500 and Nasdaq pointed lower, signaling continued pressure on the tech sector. A wave of selling has swept through major technology names this week, and Thursday’s pre‑market action suggested the downturn isn’t over yet. Alphabet remained a major drag after its sharp slide, with investors reacting to concerns about rising AI‑related spending and the uncertain payoff timeline. The pullback has added to broader anxiety across the sector, where valuations have been tested by shifting expectations around growth and profitability. Amazon now sits in the spotlight as traders await its upcoming earnings report. With sentiment already fragile, the company’s results could either steady the market or accelerate the sell‑off, depending on how its cloud and retail segments perform. Commodities also reflected the risk‑off mood. Silver prices tumbled, extending a recent decline and underscoring the cautious tone acros...
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Megacaps Rally as Investors Await Inflation Data and Major Bank Earnings


The stock market has been on a roller coaster ride lately, with investors keeping a close eye on inflation data and major bank earnings. On Wednesday, the market saw a boost as megacaps rallied, with Microsoft, Meta Platforms, and Nvidia leading the charge. The S&P 500 index gained 0.57%, while the Nasdaq Composite advanced 0.75% and the Dow Jones Industrial Average rose 0.45%.

The benchmark 10-year Treasury note yield held near 4%, and a $37 billion auction of the notes drew above-average demand. Communication services was the best performing of the 11 major S&P sectors, lifted by a roughly 4% rise in Meta Platforms’ stock to the highest level since September 2021, after Mizuho raised its price target to $470 from $400. Nvidia hit a record high after fellow chipmaker TSMC beat fourth-quarter revenue expectations.

After ending 2023 with a strong rally, stocks have struggled to find upward momentum, with the S&P 500 barely positive on the year, as mixed economic data and comments from Federal Reserve officials have led investors to dial back expectations for the timing and size of any rate cuts from the central bank this year.

The market is reassessing its 2024 expectations in terms of earnings and interest rates, and really looking to justify the surge in prices that we saw in November and December. It’s sort of a good sign that the market is treading water early in the year because it implies that investors really don’t want to miss out on anything else that could be good.


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