Some stocks could be in for a pullback as Wall Street wraps up a strong first half. The first half on Wall Street concludes after Friday's close . All three major indexes are on track to end the first half with gains, as investors have continued to ride the artificial intelligence boom despite worry over a lack of market breadth and an economic slowdown. The benchmark S & P 500 has gained roughly 15% in 2024, while the Dow Jones Industrial Average is up 5%.
Pro screened the S & P 500 for overbought names, based on their 14-day relative strength index. An RSI above 70 indicates overbought conditions for a stock, which could signal a downturn in the near term. A reading below 30 typically signals that a stock is oversold and could be due for gains. Shares of Microsoft registered a 14-day RSI reading of 74.
mountain Shares of Eli Lilly are also overbought, with a 14-day RSI of 83, putting the drug manufacturer at the top of the list. The stock has climbed nearly 57% in 2024. A large portion of Eli Lilly's rise in the first half of 2024 is thanks to the prominence of GLP-1 drugs , which emerged as a trend of its own for investors to pile into outside of the AI boom over the past year.