Stocks Today: Trio of Big Tech Names Struggle as AI Sector Pressure Weighs on Market
Some upcoming data will likely shake things up.
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Monday was another rough day for the market, as pressure on the AI sector continued to suppress overall sentiment. Names like Oracle (ORCL) , Broadcom (AVGO) and Apple ( (AAPL) ) found few willing buyers, and sectors like data centers and software were hit hard.
Overall market breadth was around 38% positive. Healthcare was a leading group, and financials also helped the bullish case. Tesla (TSLA) was a bright spot for the Magnificent Seven (MAGS) , which managed to stay close to flat.
Part of the problem was investors' reluctance to commit to more exposure ahead of economic news due Tuesday morning. November payroll data and unemployment numbers will be released, as well as retail sales and housing reports. Soft data may increase the odds of a Federal Reserve interest rate cut, which would help to relieve the pressure.
The good news is that the technical action has been quite poor for a couple of days now, and that helps create conditions for a snap-back. Many investors are still anticipating positive December seasonality and a Santa Claus rally and will be quick to jump in if the price action improves.
The mood was a bit too positive after Jerome Powell’s dovish tone after the last Fed meeting, but that has disappeared now. The reaction to the economic news in the morning has the capacity to produce better action, but it is very likely to give us some additional volatility as well.
I’m anxious to put some cash to work, but we need better technical conditions. I’m still optimistic about at least one good rally before the year comes to an end.
Have a good evening. I’ll see you tomorrow.
At the time of publication, DePorre had no positions in any securities mentioned.
