Sectors in the U.S. stock market just traded in a way that suggests investors are excessively confident and a pullback may be near, according to DataTrek Research.
Market volatility is rising but buy-and-hold ETFs like SPY, VOO and VTI offer investors diversification and long-term resilience.
A strategy of growing dividend income over time might be better than focusing on high current yields.
The S&P 500 (SPX) is positioned for continued gains, supported by strong technical trends above key moving averages on both monthly and weekly charts. Seasonal data favors a bullish outlook, as October through January have historically delivered positive returns and strong market performance. Fundamental tailwinds include recent and expected Fed interest rate cuts, rising consumer spending, and robust corporate earnings growth forecasts for Q3.
Global chip stocks rally
U.S. Q2 GDP grows at fastest pace in two years, fueled by consumer spending and business investment, boosting ETF opportunities.
Wobbles by the S&P 500 near fresh highs has caused skittish behavior by Wall Street's smart money recently. That will help smooth a path to 7,000, says this trader.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.
Gains haven't been limited to the companies at the top of the S&P 500.
These stocks have low price/earnings ratios, and most have been overlooked by investors this year.
Traders eye Powell's tone, dot plot, and yield curve to gauge if Fed cuts boost US stocks—or stoke inflation fears.
The S&P 500 posted four straight days of gains before inching down on Friday. The index ultimately finished the week up 1.6%, marking its fifth weekly gain in the past six weeks.