NVDA - IGM: Expanded Tech Margins In Focus Price Action Is Stretched
2024-02-21 14:03:11 ET
Summary
- Goldman Sachs forecasts rising margins for the Information Technology and Communication Services sectors, potentially driving the S&P 500 higher in 2024.
- The iShares Expanded Tech Sector ETF faces concentration risk due to its largest holding, Nvidia, potentially underperforming given a high bar ahead of its earnings report Wednesday night.
- IGM has a high allocation to large-cap growth stocks and a strong seasonal trend, but a correction may be in the works based on technical indicators.
- I point out key price levels to monitor as we approach the tail end of Q1.
Is tech the only game in town? It has felt that way for much of the last 14 months, sans a brief bout of better breadth during the final quarter of 2023. Goldman Sachs put out a note last Friday upping its year-end S&P 500 price target. It wasn’t a whole-hearted endorsement of the US stock market, however. David Kostin and his team remarked that US large-cap margins are actually somewhat lackluster ex-tech. The implication is that the Information Technology and Communication Services sectors could continue to power the SPX higher in 2024....
IGM: Expanded Tech Margins In Focus, Price Action Is Stretched