NEW YORK - A blistering rally in U.S. big tech stocks may be due for a breather, offering hope for market segments that have been more tepid this year.
"Nvidia has been a rocket ship, and when things go up this quickly you don't want to be the last one through the exit door," said Michael Purves, CEO of Tallbacken Capital Advisors. "People want to be invested in this equity rally, and if they sell Nvidia the most likely places they are going to go is value and cyclical stocks."
Tech appears over-extended based on several barometers, Purves noted. The Relative Strength Indicator of the Mag6 Index, which measures the speed and magnitude of price changes in the stock market's six biggest stocks, is at the highest it has ever been, he said. The 13% month-to-date gain in the VanEck Semiconductor ETF is a sign that AI-fever might have gone too far, said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
The Russell Value index is up 5.6% this year. Investors have given an even chillier reception to small cap stocks, with the Russell 1000 down 0.5% year-to-date. Imagine selling your Nvidia stake, now worth $160 billion, 5 years ago: One tech investor rues the deal of a lifetime slipping through his fingers as ‘the fish that got away’
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: globeandmail - 🏆 5. / 92 Read more »