UAL - Wall Street Set To Open Weak Lower As Tech Feels China Chill: Analyst Says Stay Bullish 'If And Until This Changes' | Benzinga
Major U.S. index futures edged lower on Monday, reflecting the cautious mood from last week’s close. The tech sector could face additional pressure due to China’s plan to phase out U.S. chipmakers from government PCs and servers. Three upcoming Fed speeches this week may offer clues about future interest rate hikes.
Recap Of Last Week’s Market Activity
The week ending on March 22 saw a surge in trading activity after the Federal Reserve signaled its willingness to begin easing monetary policy from current levels. Despite inflation remaining elevated, Fed officials, led by Jerome Powell, hinted at three rate cuts this year. This announcement led to a market recovery, with the tech sector and small-cap stocks notably rebounding. However, as the Fed-related optimism waned towards the end of the week, the indices retreated slightly.
Index Performance (+/-) Value
Nasdaq Composite +2.85% 16,428.82
S&P 500 Index +2.29% 5,241.53
Dow Industrials +1.97% 39,475.90
Russell 2000 +1.60% 2,072.00
Insights From Analysts:
Louis Navellier, a fund manager, anticipates a potential correction following the strong gains of the first quarter. “Concerns about the market being stretched are inevitable with such strong gains in the first quarter of the year, with a few analysts’ year-end targets already reached,” he said. “We’re overdue for a correction, if only from rebalancing holdings, where the equity exposure has grown beyond the model weight.”
Conversely, Ryan Detrick of Carson Group remains bullish, stating that defensive stocks have yet to lead, a trend typically observed in bearish markets. In a bearish market, “the defensive stuff starts to lead, that’ll be a warning sign,” he said. He shared a chart showing defensives continuing to lag and said. “If and until this changes, I ...