Piper Sandler analyst Craig Johnson has predicted a period of consolidation in the markets as they approach all-time highs. He noted an uptick in staples, utilities, and financials.
What Happened: During CNBC’s “Last Call” on Thursday, Johnson reflected upon the recent market activities. Dow Jones picked up gains for the seventh session in a row by picking up 331.37 points, S&P 500 jumped over 5,000 in a month and Nasdaq continued its pace for the longest win streak in three months with 0.27% gain.
Johnson said, “For 2024, we are going to be in this high-level consolidation range…We think we’re going to be chopping around and consolidating around.”
“Because as we look into the internals of this market…we’re seeing a pick-up in staples. We’re seeing a pick-up in utilities. We’re seeing a pick-up in financials.”
Why It Matters: Johnson’s comments come as the market recorded gains. Despite this, the CNN Money Fear and Greed index remains in the “Fear” zone, indicating mixed market sentiment.
Wall Street has seen a day of gains, with all major indices trading in the green.
This uptick is driven by a surprising increase in unemployment claims, which rose from 209,000 to 231,000 in the week ending May 4, surpassing market expectations. This has led to speculation over potential Federal Reserve interest rate cuts.
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