ACTV - A Weaker Economy Is Good Until It Is Not
2024-07-04 11:36:24 ET
Summary
- Technology stocks led the market rally, with Nvidia and Broadcom up over 4% after Nancy Pelosi disclosed purchases in both names.
- Despite weaker economic reports, investors are optimistic about potential rate cuts by the Fed to combat slowing economic growth.
- Signs of economic weakness include a decrease in job growth, a rise in continuing unemployment claims, and a decline in the ISM Non-Manufacturing PMI.
- The Fed needs a less restrictive policy sooner than later to stave off further economic weakness.
It was another top-heavy market on a shortened trading session before the 4th of July holiday, with technology leading the way, as Nvidia (NVDA) and Broadcom (AVGO) both rallied more than 4% on news that Nancy Pelosi disclosed purchases in both names in her most recent filing. She has a large following of investors who closely watch what have been prescient stock-picking moves in the past. Given the outsized weighting of both names, the S&P 500 and Nasdaq Composite rose to new all-time highs again....
A Weaker Economy Is Good Until It Is Not