Bloomberg: Some on #WallStreet are optimistic because #profit expansion is spreading beyond the small group of #tech #megacaps that have driven much of this rally. A version of the #S&P500 that excludes the so-called #MagnificentSeven companies is estimated to post 13% earnings growth in 2026.

#MegaCaps’ market-cap share has diverged from sales, chart #MorganStanley

📊 #TechnicalAnalysis #RSI #OptionsFlow #Butterfly #LEAPS #Megacaps #Earnings #DipBuying #RiskManagement #PriceTargets

#NVDA #Markets #TechnicalAnalysis #RSI #OptionsFlow #Butterfly #LEAPS #Megacaps #Earnings #DipBuying #RiskManagement #PriceTargets (10/10)

2y UST yield is now discounting short-term rate cuts of at least 50bp – given relative #valuations, bond market and #smallcap and #midcap stocks are likely bigger beneficiaries of cuts than #megacaps – chart #MorganStanley

Broadening equity market exposure beyond US #megacaps demonstrated an effective strategy for max financial returns in 1H2025. Research continues to see merit in adopting #diversified equity exposures going forward, particularly given #tariffs, US debt dynamics, chart @goldmansachsgroup.bsky.social

Original post on moneyweb.co.za

Big tech earnings defy fears of ‘worst-case scenario’ for stocks 'A lot of investors were...

www.moneyweb.co.za/news/markets/big-tech-ea...

#Fast #News #Markets #Donald #Trump #Magnificent #Seven #Mark #Luschini #megacaps #S&P;

Result […]

Citi raises U.S. stocks, says buy mega caps Investing.com -- Citi has raised its stance on U.S. equities, citing reduced recession risks following U.S. President Donald Trump’s decision to delay reciprocal tariffs for 90 days. The firm upgraded both U.S. and European stocks to overweight in its Global Asset Allocation (GA) portfolio, pointing to improved conditions for risk assets. “Buy Nasdaq and EuroStoxx. Both have triggered recently in our global equities VRP tracker,” Citi strategists said, referring to their volatility risk premium signal. “We like the mix of oversold rebound risk in Nasdaq and large tariff reduction on Europe and trading partners.” The Nasdaq was one of the most oversold indices prior to the announcement, according to the report. In the Global Macro (BCBA:BMAm) Strategy (GMS) discretionary portfolio, Citi initiated new long positions in the Nasdaq futures contract (NQ1) and Eurostoxx futures (VG1), describing them as tactical trades with solid expected Sharpe ratios. “These are very tactical trades, and we are cognizant of risks into earnings season from ongoing uncertainty for U.S. firms,” strategists said. The changes come as Trump lowered the reciprocal tariff rate to 10% and temporarily paused levies on “non-retaliating” countries. Citi notes the “Trump Put” reduces near-term recession probabilities for now and justifies re-risking portfolios. Alongside the upgrades, Citi also downgraded Hang Seng China Enterprises Index (HSCEI) to Neutral. In commodities, Citi said the recent value at risk (VAR) shock that pressured large gold positions “now appears to be behind us,” prompting a return to its long-standing bullish view on precious metals. The Wall Street firm upgraded the asset class back to overweight and re-engaged with long gold trades in its discretionary portfolio. On copper, Citi closed its underweight stance, citing falling recession probabilities as supportive for a bounce in base metals. In credit, Citi neutralized its underweight in U.S. investment grade by adding exposure to high yield, expecting spreads to compress as recession fears ease. “HY spreads should compress versus IG, risk adjusted,” the strategists noted. On the FX front, Citi remains long EURUSD cash, citing potential support from lower tariffs in Europe and the rest of the world. The strategists see this benefiting the broader reallocation theme. "Uncertainty stays high for U.S. firms, [which] can help further the reallocation theme we have been writing about," strategists said.

Click Subscribe #Investing #StockMarket #Citi #MegaCaps #USStocks

US stocks (excluding #megacaps) joined Europe and Asia in closing higher. All eyes are now on the #Fed and the #Bundestag. Manuel Villegas guides us through the latest digital asset developments on today's #MovingMarkets podcast.

Listen now:
➡️ Apple: t.co/GhpU8KBwm1
➡️ Spotify: t.co/M3EuvtODwQ

Nasdaq 100 Index sank into a #correction at the end of last week as investors soured on American #megacaps – futures suggest more misery is coming, chart @markets www.bloomberg.com/news/article...

Here are the closing stock prices for #mag7 companies on 10 January 2025.

Overall, the tech sector experienced a mixed performance, with most major companies seeing declines, except for Meta Platforms, which posted a modest gain #megacaps #NASDAQ100

#Magnificent7 -- #MegaCaps’ contribution to the broader index has been impossible to overstate in 2023 and 2024, chart @yahoo-finance.bsky.social flo.uri.sh/visualisatio...

Equal Weight S&P 500 ($RSP) is nearing its largest underperformance versus $SPY since the market bottom during the Global Financial Crisis. 🚨
A clear reflection of how concentrated mega-cap leadership has become in this rally. Can the broader market catch up? 🤔

#MarketBreadth #MegaCaps #Investing

The equal weighted #SPX (#SPXEW) is breaking above the #SP500, in my opinion that's a good sign of a wider participation in the market outside of the #megacaps. What's your take good or bad for the market?

On the weekends I look at the #markets, see how we are doing and how they are shaping up for next week. Right now we are looking bullish, but I am cautious. I particularly like that the breadth has improved, saw wider participation this week outside of the #megacaps 📉📈 #trading #swingtrading

Only 55% of #stocks #trading above their #50daymovingaverage, which is concerning we are at all time highs in the market. The #megacaps having a big impact.

1 Bloomberg: #Investors are growing increasingly concerned that US #technology #megacaps are spending too much on #artificialintelligence, according Goldman Sachs strategists. 🧵
#AI