TGT - Nasdaq Futures Slide On Mega-Cap Tech Weakness: Analyst Paints 1999-Like Rosy Picture Tells Investors To 'Hang On And Enjoy The Ride' | Benzinga
After soaring to record highs last week, traders are taking a wait-and-see approach as they anticipate a series of upcoming market-moving events. Following Monday’s pullback, stock futures are trading slightly down on Tuesday morning, with mega-cap tech leading the decline.
Analysts suggest this pre-market weakness may reflect traders taking profits ahead of key events this week, including Federal Reserve Chair Jerome Powell‘s Congressional testimony.
Cues From Monday’s Session:
Stocks reversed course on Monday, with concerns about overbought conditions prompting investors to exercise caution.
The major averages opened lower and remained mostly flat throughout the day, except for a brief rally in late afternoon trading.
The S&P 500 and the Nasdaq Composite retreated from their all-time highs, while small-cap stocks in the Russell 2,000 Index showed stronger resilience, only declining in late trading.
Defensive sectors like utilities and real estate led the gains, while communication services, consumer discretionary, and energy stocks faced significant selling pressure.
Index Performance (+/-) Value
Nasdaq Composite -0.41% 16,207.51
S&P 500 Index -0.12% 5,130.95
Dow Industrials -0.25% 38,989.83
Russell 2000 -0.10% 2,074.31
Analyst Color:
A fund manager on Monday reaffirmed his bullish stance on equities. “While some investors are now questioning the strength across so many market sectors, and the surprising lack of hedging for an inevitable correction, it is interesting to note that historically, when the S&P is up in the first 2 months of the year, it has a positive full-year return 96% of the time, with an annual increase of 20.2%,” said Louis Navellier.
“When a pullback comes, it seems likely that money will flow off the sidelines seeing it as ...