Reviewed by Gotrade Internal Analyst
Wall Street stumbled for two straight days, with the Nasdaq leading the drop by 1% due to new regulatory pressures. Investors are now in "wait and see" mode, looking for market direction from the upcoming earnings releases of giant issuers scheduled for today.
This correction hits right in the middle of earnings season, triggering massive profit taking actions in the banking sector. Volatility is predicted to stay high ahead of key cyclical data releases that reflect consumer purchasing power.
Key Takeaways
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NVIDIA Corporation gets hit by import tariffs, while Intel Corporation jumps thanks to high demand for server CPUs.
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Bank stocks like Wells Fargo & Company took a dive even though US inflation remained stable as expected.
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Market focus shifts to the cyclical sector as the main indicator of the US economy's strength next.
The financial sector kicked off this season on a disappointing note after JPMorgan Chase & Co. and Bank of America Corporation both weakened. On the tech side, tariff sentiments are shadowing valuations, even though infrastructure data demand is still going strong until 2026.
However, controlled core CPI data with a 0.3% rise signals that US economic fundamentals are still pretty stable. Smart investors are now shifting their attention, looking for rotation opportunities into sectors that aren't too hot yet, like consumer discretionary.
Tonight, The Goldman Sachs Group, Inc. and Morgan Stanley will report, but the main narrative is starting to shift to consumer resilience. Deep analysis on issuers like NIKE, Inc. and Tesla, Inc. becomes crucial to spotting rebound opportunities.
Cyclical Sector Trading Strategy
The Gotrade analyst team will dissect the potential movement of the cyclical sector specifically, including technical prospects for Target Corporation and The Home Depot, Inc.. This strategy is designed specially to capitalize on the ongoing market rotation moment while tech volatility spikes.
Don't miss the "Cyclical Sector Review" Live charting session tonight at 19.00 UTC+7 to set your portfolio positions. Click the link below to join directly and discuss with our analyst team.
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Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
