The stock market continues to send investors mixed messages, blending signs of resilience with hints of fragility. Economic data shows robust corporate earnings, yet labor market weakness, inflation and interest rate worries, and geopolitical tensions have sparked bouts of selling. Investors face a dilemma: commit fresh capital to equities amid record highs, or shift toward bonds and cash for protection? Just a week ago, the S&P 500 appeared poised for a 10% correction, with breadth narrowing and volatility spiking.
NVIDIA surged today despite terrible market breadth. Consumer Staples were down 2.36%, Real Estate was down 2.73%, Financials were down 1.7%, and Healthcare was down 1.01%. Even amongst technology stocks, it wasn't smooth sailing. Software stocks got hammered. In after hours trading tonight, shares of Meta Platforms (Nasdaq: META) are down 7% while shares of Microsoft (Nasdaq: MSFT) are down 4%.
