33 Mins Ago
Defensive sectors traditionally outperform first after a rate cut, Strategas says
In the first six months after a rate cut, the defensive sector has traditionally led the market, according to a new Strategas report.
However, the firm cautioned that the new artificial intelligence boom might make a difference this time around.
“Utilities is the only sector to outperform in each of the four instances we have data for but what’s important today is to keep in mind the major drivers of the ‘AI’ craze and cash hoarders are in Technology and Communications today,” Strategas wrote.
The firm added that on average, stocks have performed their best during periods where inflation has remained stagnant.
— Lisa Kailai Han
43 Mins Ago
Equal weight S&P ETF is ‘flirting with important support,’ Wolfe says
The performance of the Invesco Equal Weight S&P ETF (RSP) is worrying investors, according to Wolfe Research.
“To the frustration of many, the equal-weight S&P is flirting with important support,” wrote Rob Ginsberg, Wolfe Research managing director, in a Friday note to clients. He added that “now would be an excellent time for momentum to present itself” following its peak in late March.
The equal weight ETF hit a fresh high of $169.80 on March 28, closing that day’s trading session up 0.35% at $169.37 after starting the session at $169.16. Since then, the ETF has been down around 4%, moving 1% lower during Friday’s session.
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Invesco S&P 500 Eql Wght ETF, 1-day
An Hour Ago
Broadcom heads for best week on record following earnings
Broadcom’s postearnings rally this week put the stock on track to notch its biggest weekly gain in its history.
Shares have surged more than 23% so far this week. Its best completed week on record came in late March, when the stock jumped around 20%.
Broadcom has climbed every day this week in the lead up and aftermath of its second-quarter earnings report, which came in ahead of Wall Street forecasts on both lines. The chipmaker also announced a 10-for-1 stock split.
— Alex Harring
An Hour Ago
Information technology stocks lead S&P 500…
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