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US stock market at all-time highs, but top 100 companies dominate, raising concerns about lack of breadth and participation in the rally. Tech sector driving extreme valuations, surpassing historical highs. Risk is high, according to analysts.

5 Charts Expose Troubling Weaknesses In Record-High Stock Market: &#39;This Is Not Normal&#39;

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To gain an edge, this is what you need to know today.



Nvidia Driving Stock Market Rally, Average Stock Is A Different Story, AI Copper Trade Hurting

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Paramount Global&#39;s National Amusements, controlled by Shari Redstone, is attracting interest from former exec Edgar Bronfman Jr. and Hollywood producer Steven Paul, as it faces challenges and potential mergers. Warren Buffett sold its stake, while Sony and Apollo were previously interested. Stock trading lower.

Paramount&#39;s Parent Attracts Bids from Bronfman Jr and Steven Paul

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Bank of America&#39;s chief investment strategist turns bullish on bonds, expects stock market sell-off. Advises to buy dip in bonds and sell first cut for stocks.

Bank Of America Strategist Shifts To Bonds: Stock Sell-Off Prophecy On Benign Inflation Comes True

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Tax Day usually coincides with a jittery stock market as the S&amp;P 500 Index typically declines during the first half of April.

How Does The Stock Market Perform Ahead Of Tax Day? &#39;Rough&#39; At First, Data Shows

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Goldman Sachs predicts a favorable juncture for risky assets as global manufacturing activity aligns with service sector growth, bolstering investor confidence.

Manufacturing Rebound Puts Markets Between &#39;Goldilocks&#39; And &#39;Reflation Flirtation&#39;: Goldman Sachs

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US producer prices rose more than expected in Feb, raising concerns about a potential resurgence in inflation. Market reactions were mixed.

Producer Inflation Tops Forecasts In February, Signals Anxiety Over Price Pressure Resurgence (UPDATED)

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Goldman Sachs urges investors to diversify geographically due to high concentration in US tech stocks, with Japan, healthcare, and European GRANOLAS highlighted as promising markets.

Top Wall Street Analysts Flag US Market Concentration Anxiety, Advise Investors To Adopt &#39;Barbell Approach&#39;

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Nvidia Corp. is one of the leading top stocks with 60% gain in 2024, but other lesser-known names have outperformed.

Top Stocks Not Named Nvidia You Need To Know About In 2024: Here&#39;s What Investors Think About Them (Wall Street Vs. Reddit)

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After the exuberance seen on Thursday, investors may assess whether it was an irrational one, and futures trading on Friday reflects edginess.

Nasdaq, S&amp;P 500 Set for Mixed Open After Nvidia Euphoria: Analyst Picks Major Market Catalyst This Year If There Are No Rate Cuts

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As the S&amp;P 500 and Nasdaq 100 indices continue to notch <a href="https://www.benzinga.com/top-stories/24/06/39383798/the-ai-big-10-10-ai-stocks-now-comprise-28-of-s-p-500-up-from-14-in-2023">new all-time highs</a>, it&#8217;s clear that the rising tide has not lifted all boats.
Sharp-eyed analysts and investors have noted some discordant features in a stock market at its peak, raising questions about the euphoria that currently reigns <a href="https://www.benzinga.com/markets">supreme on Wall Street.</a>
<h2 class="wp-block-heading">Mega-Cap Dominance Unprecedented Since Late 2008</h2>
The dominance of mega-cap stocks hasn&#8217;t been this pronounced in nearly sixteen years. 
The top 100 U.S. stocks by market capitalization, monitored through the iShares S&amp;P 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEF#NYSE">OEF</a>), have never been stronger against the Russell 1000 Index, as tracked by the iShares Russell 1000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWB#NYSE">IWB</a>), since December 2008-.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47-1024x500.png" alt="" class="wp-image-397825" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142746/image-47.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
David Morrison, senior market Analyst at Trade Nation, commented, &#8220;There are concerns about the US market's lack of breadth with so much of the overall performance concentrated in the stock price of a few corporations. In fact, the five biggest companies by market capitalization in the S&amp;P 500 account for nearly 30% of its value. The size and outperformance of this select group is reflected in its valuation, which is way above that of the rest of the constituents.&#8221;
<h2 class="wp-block-heading">Poor Participation In Market Rally</h2>
The current bull market rally lacks broad participation, with only a few companies driving the major indices higher.
The cap-weighted S&amp;P 500 Index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has surged to levels last seen in November 2008 when compared to its equally-weighted counterpart, represented by the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>).
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44-1024x500.png" alt="" class="wp-image-397797" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141510/image-44.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
&#8220;We haven't had a four-week span where the US stock market has gone up so much with so many stocks within the market going down, based on data going back to 2002,&#8221; said Luke Kawa, markets editor at Sherwood.
SentimenTrader in a post on social media X, indicates that while the Nasdaq 100 continues to achieve record highs, many of its constituent stocks are underperforming, dropping to monthly, quarterly, or even yearly lows and falling below their 10-, 50-, and 200-day moving averages. 
&#8220;This is not normal. In fact, it&#8217;s never happened before to this degree. There is a possibility that the average stock will catch up to the index, that is not how things usually pan out. Almost never, in fact. Risk is high in that index,&#8221; they wrote.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The Nasdaq 100 continues to notch record high after record high. Many of its stocks are not only lagging, but they&#39;re falling to monthly, quarterly, or even yearly lows and below their 10-, 50-, and 200-day moving averages. This is not normal. In fact, it&#39;s never happened before… <a href="https://t.co/gopsw8WUJn">pic.twitter.com/gopsw8WUJn</a>
&mdash; SentimenTrader (@sentimentrader) <a href="https://twitter.com/sentimentrader/status/1802687052724527265?ref_src=twsrc%5Etfw">June 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h2 class="wp-block-heading">Tech Supremacy Surpassing Historical Extremes</h2>
The tech sector has been the primary driver of the extreme relative valuations among major U.S. stock indices. 
The Nasdaq 100, when compared to both the Dow Jones Industrial Average and the Russell 2000, is at historic highs, surpassing previous peaks seen during the dot-com bubble and in December 2021 at the end of the ultra-low interest rate era.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45-1024x500.png" alt="" class="wp-image-397801" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20141752/image-45.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46-1024x500.png" alt="" class="wp-image-397808" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20142011/image-46.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read now: <a href="https://www.benzinga.com/government/24/06/39400726/us-budget-crunch-cbo-warns-federal-interest-costs-now-higher-than-defense-spending-deficits-to-remai">US Budget Crunch: CBO Warns Federal Interest Costs Now Higher Than Defense Spending, Deficits To Remain Above 5.5% Until 2034</a>
Image created using artificial intelligence via Midjourney.

5 Charts Expose Troubling Weaknesses In Record-High Stock Market: 'This Is Not Normal'

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/06/2024-06-17_08h34_23.png" style="height:360px; width:700px" />
<h3>Pay Attention To The Average Stock</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-nvidia-driving-rally-copper-trade-rsp-nvda-spy-mc-06172024">click here</a> for an enlarged chart of SPDR S&amp;P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&amp;P 500 (SPX).
Note the following:
<ul>
<li>The chart shows SPY compared to Invesco S&amp;P 500 Eql Wght ETF (ARCA: RSP) and NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>).&nbsp;SPY is cap weighted.</li>
<li>The chart shows that SPY has gained 2.6% over the last 30 days while RSP has lost 2.45%.</li>
<li>The chart shows that NVDA has gained 39.76% during the same period.</li>
<li>Make no mistake, it is an NVDA rally, taking along other AI stocks.&nbsp;However, the average stock is doing poorly.</li>
<li>History teaches that it is not prudent to become overly aggressive when the average stock is doing poorly.&nbsp;&nbsp;</li>
<li>As full disclosure, members and readers of The Arora Report are long NVDA stock from $12.55.&nbsp;The Arora target is $163 -&nbsp; $172.</li>
<li>The Arora Report was bullish on AI and NVDA before almost anyone else.&nbsp;Having said that, an important data point is that the most often asked question we get now is from investors wanting to jump on the bandwagon and buy NVDA stock now.&nbsp;Based on the history of the questions we have received over a long time, this indicates extreme bullish sentiment on NVDA stock.&nbsp;Consider the following:
<ul>
<li>Extreme bullish sentiment is a contrary signal.&nbsp;It is worth a reminder that sentiment is not a precise timing indicator.</li>
<li>Analysts who have been bullish on NVDA stock from much lower prices are not recommending jumping on the NVDA bandwagon now.</li>
<li>Analysts who totally missed NVDA&rsquo;s rise are now jumping in, recommending their followers to go all in on NVDA.</li>
<li>The recent rise in NVDA is mostly driven by retail investors.</li>
<li>Historically, retail investors tend to be wrong at turning points.</li>
<li>Technically NVDA is very overbought.</li>
</ul>
</li>
<li>Investors should remember two historical factors:
<ul>
<li>Analysts are expecting NVDA to grow 70% per year over the next five years.&nbsp;This is something that no large cap U.S. stock has ever accomplished in the entire market history.</li>
<li>Out of the ten most popular stocks in 1988 that retail investors were rushing headlong to buy, eight no longer exist. The only two that still exist are IBM Common Stock&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ibm#NYSE">IBM</a>) and General Electric Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ge#NYSE">GE</a>).</li>
</ul>
</li>
<li>Prudent investors who do not already own NVDA stock may consider buying on a dip in the Arora buy zone.</li>
<li>The Fed&rsquo;s Kashkari said that the Fed can take its time before cutting rates.</li>
<li>More Fed speak is ahead that may be market moving.</li>
<li>The U.S. economy is 70% consumer based.&nbsp;Therefore, prudent investors pay attention to retail sales.&nbsp;All important retail sales data will be released tomorrow at 8:30am ET.</li>
</ul>
<h3>Red Hot Copper Trade</h3>
The AI driven red hot copper trade is getting hurt on data from China.&nbsp;Here are the two pieces of data from China that are hurting copper:
<ul>
<li>House prices declined by 3.9% year-over-year.</li>
<li>Industrial production grew by 5.6% year-over-year vs. 6.2% consensus.</li>
</ul>
<h3>Europe</h3>
There were early gains in Europe as investors bought on Marine Le Pen&rsquo;s statement that she would cooperate with President Macron and respect political institutions.&nbsp;However, the rally was met with selling, causing gains to mostly disappear
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Nvidia (NVDA).
In the early trade, money flows are neutral in Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) and Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), and Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>).
In the early trade, money flows are negative in S&amp;P 500 ETF (SPY) and positive in Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h4>Momo Crowd And Smart Money In Stocks</h4>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
Note for new investors: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.&nbsp;Over a long period of time, investors come out ahead by adopting smart money&rsquo;s ways.&nbsp; The exception is in a raging bull market &ndash; for very short term trades, consider following the momo crowd and not smart money.
<h3>Gold</h3>
The momo crowd is selling gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is buying oil in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing slight selling in the early trade.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp;A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.&nbsp;Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Paramount Global&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) <a target="_blank" href="https://www.benzinga.com/m-a/24/06/39135330/why-is-paramount-global-stock-trading-higher-on-monday" rel="noreferrer noopener">controlling company</a>, National Amusements, has attracted interest from former media executive Edgar Bronfman Jr., backed by Bain Capital. The company is offering between $2 billion and $2.5 billion.
This interest comes as Shari Redstone, who controls Paramount, is negotiating to sell a majority stake in National Amusements to Skydance Media, potentially merging Paramount with Skydance.
Hollywood producer Steven Paul is also preparing a $3 billion offer for National Amusements, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/media/edgar-bronfman-eyes-2-billion-plus-bid-for-company-that-controls-paramount-ccad92be?mod=latest_headlines" rel="noreferrer noopener">reports</a>. Paramount stock is trading lower on Monday.
The sale of NAI would result in a new controlling shareholder for Paramount. At the same time, the Skydance deal would offer non-Redstone shareholders a premium buyout option and provide $1.5 billion to reduce Paramount&#8217;s debt.
Shari Redstone received the fewest votes among directors in the company&#8217;s recent board election, with 32.2 million votes.
She also received the most votes against her election, totaling over 905,000.
During the annual shareholder meeting, Paramount&#8217;s co-CEOs presented a restructuring plan aimed at $500 million in annualized cost cuts, potential asset sales, and exploring partnerships for the Paramount+ streaming service, Reuters reports.
The company faces challenges with declining traditional TV business and has yet to recover lost revenue through its streaming service.
In May, Warren Buffett&#8217;s Berkshire Hathaway Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) <a target="_blank" href="https://www.benzinga.com/m-a/24/06/39135330/why-is-paramount-global-stock-trading-higher-on-monday" rel="noreferrer noopener">sold its entire</a> stake in Paramount.
Earlier reports suggested Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) and Apollo Global Management Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>) were jointly bidding for Paramount.
Paramount&nbsp;stock lost over 27% in the last 12 months. Investors can gain exposure to the stock via The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) and Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>).
Price Action: PARA shares were trading lower by 1.08% at $11.88 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by 4kclips via Shutterstock

Paramount's Parent Attracts Bids from Bronfman Jr and Steven Paul

Bank of America Chief Investment Strategist Michael Hartnett has turned bullish on bonds for the second half of the year, while raising heightened risks of a stock market sell-off as investors bet on the first <a href="https://www.benzinga.com/topic/interest-rates">Fed interest rate cut</a>.
Hartnett, known for his bold contrarian market views, reiterated in his latest &#8220;The Flow Show&#8221; report that the &#8220;anything-but-bond&#8221; trade will play out for the remainder of the year.
According to Hartnett, a slowing economy will reduce the currently elevated equity valuations. Additionally, with fiscal policy expected to become more conservative in 2025, current market fears regarding bond yields are likely to ease. 
He advised investors to &#8220;buy any dip in bond prices,&#8221; while recommending to &#8220;sell the first cut&#8221; for stocks. 
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38894659/bank-of-americas-contrarian-guru-unveils-best-portfolio-hedge-against-hard-landing-">Earlier this month, Hartnett suggested</a> the 30-year US Treasury provided &#8220;the best hedge for weaker nominal growth.&#8221;
<h1 class="wp-block-heading">The Worst Equity Market Breadth Since 2009</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="658" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125-1024x658.png" alt="" class="wp-image-365773" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125-1024x658.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125-300x193.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125-768x494.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125-1536x987.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/31113823/image-125.png 1568w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Chart: Bank of America Securities
Despite many investors and analysts on Wall Street believing that a Fed rate cut would further sustain the stock market rally, Hartnett&#8217;s counterintuitive call is based on a detailed analysis of the so-called &#8220;market breadth.&#8221;
Hartnett highlighted that the Equal Weight S&amp;P 500 Index, tracked by the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), is trading at its lowest relative to the cap-weighted S&amp;P 500 Index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), since March 2009.
According to Hartnett, &#8220;the worst stock breadth since March &#8217;09&#8221; is a warning sign, reflecting the extreme market dominance of a few tech giants, namely Magnificent Seven.
&#8220;AI crowds out Wall St &amp; Main St dollars,&#8221; Hartnett wrote in the note. 
He reminded investors that since 2020, there has been &#8220;pain trade after another&#8221; and predicted that the next trend will be &#8220;value outperforming growth&#8221; stocks, with &#8220;breadth winning&#8221; as economic growth slows.
<h1 class="wp-block-heading">A Benign PCE Failed To Support &#8220;Wobbly Tech&#8221;</h1>
The catalyst for this shift would be a benign April Personal Consumption Expenditure (PCE) report, which turned out to be unable to &#8220;support wobbly tech,&#8221; according to Harnett.
This appears to be the case, as on Friday, May 31, the Fed&#8217;s favorite inflation gauge came in as expected, alleviating fears of a reawakening in price pressures. 
Despite this, the Nasdaq 100 index, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tumbled 1.4% during midday trading in New York. As a result, tech stocks are set to snap a five-week winning streak.
You were right, Michael. 
Read now: <a href="https://www.benzinga.com/markets/equities/24/05/39113676/are-rate-cuts-imminent-after-feds-preferred-inflation-data-holds-steady-be-careful-what-you-wish">Are Rate Cuts Imminent After Fed&#8217;s Preferred Inflation Data Holds Steady? &#8216;Be-Careful-What-You-Wish-For Moment&#8217;</a>
Photo: Funtap on Shutterstock

There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
Image: Shutterstock

How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

According to Goldman Sachs, an improvement in global manufacturing activity is leading to conditions historically known to <a href="https://www.benzinga.com/topic/wall-street">boost the market.</a>
Analyst Cecilia Mariotti projects a promising alignment in global manufacturing data with the vigorous growth levels seen in the service sector, a convergence that includes non-U.S. manufacturing activities reaching parity with those of the U.S. 
This development signals a favorable juncture for risky assets, potentially catalyzing a rally extension into previously lagging sectors.
<h4 class="wp-block-heading">Optimism During Changing Economic Indicators</h4>
Recent macroeconomic data have signaled a promising mix of solid U.S. growth, a global uptick in activity, and moderating inflation. 
This mix has effectively bolstered investor confidence, leading to a notable ascendancy of risk-oriented assets over their safe-haven counterparts. 
Mariotti underscores the unparalleled surge in regional equity markets, along with significant upticks in Bitcoin and gold, reflecting overarching investor optimism.
<h4 class="wp-block-heading">The Delicate Balance: &#8216;Goldilocks&#8217; And &#8216;Reflation Flirtation&#8217;</h4>
Despite potential macro challenges, the markets have demonstrated an impressive ability to absorb minor inflationary spikes, buoyed by the belief of upcoming central bank rate cuts.
This equilibrium has surprisingly underpinned an equity rally since the last quarter of 2023, surpassing the typical gains associated with historical manufacturing recoveries. 
However, this enthusiasm has not been uniformly distributed across all market sectors, pointing towards a highly selective and technologically driven market environment.
The &#8220;Magnificent Seven,&#8221; as followed by the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), has played a pivotal role in this equity market upsurge.
<h4 class="wp-block-heading">Anticipating a Rally Expansion</h4>
Mariotti posits that a confirmation of continued activity improvement could trigger an expansion of the ongoing rally. A noteworthy development is the diminishing performance disparity between the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) and the cap-weighted SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Yet, with the ISM Manufacturing Index signaling a recovery, expectations for substantial rate cuts may need to be tempered. 
Such a scenario is likely to disproportionately affect specific sectors, especially infrastructure and real estate, which may need more pronounced rate relief to excel in a reflationary landscape. 
Conversely, copper is spotlighted as a potential high performer, backed by historical trends of strong returns amid increasing activity levels.
&#8220;Over the near term, markets are likely to continue to oscillate between &#8216;Goldilocks&#8217; and &#8216;Reflation flirtation&#8217;,&#8221; Mariotti stated. 
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37942317/gold-mining-stocks-eye-best-month-in-a-year-as-golden-era-for-the-precious-metal-lo">Gold Mining Stocks Eye Best Month In A Year As &#8216;Golden Era&#8217; For The Precious Metal Looms</a>
Image generated using artificial intelligence with Midjourney.

Manufacturing Rebound Puts Markets Between 'Goldilocks' And 'Reflation Flirtation': Goldman Sachs

Editor&#8217;s Note: This article has been updated to include new information on price changes for specific items such as diesel fuel and chicken eggs, alongside hay and hayseeds prices.
Producer prices in the United States rose more than expected in February, echoing a similar trend observed the previous month and raising concerns about a potential <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37627788/inflation-tops-forecasts-in-february-as-stocks-rally-7-economists-react">resurgence in inflationary pressures.</a>
The Producer Price Index (PPI) rose by 0.6% month-over-month in February, the Bureau of Labor Statistics reported Thursday. This increase represented an acceleration compared to January&#8217;s 0.3% pace, and exceeded the expected 0.3%. 
The producer inflation data comes on the heels of a February&#8217;s consumer inflation report that also exceeded expectations earlier this week, presenting challenges to the anticipated adjustments in the Federal Reserve&#8217;s interest rate policies.
<h3 class="wp-block-heading">February&#8217;s PPI Report: Key Highlights</h3>
<ul>
<li>Headline PPI inflation rose by 0.6% on a monthly basis, up from 0.3% and exceeding the forecasted 0.3%. </li>
<li>On an annual basis, the headline PPI was 1.6% higher, up from the 0.9% witnessed in January and above the expected 1.1%. </li>
<li>One-third of the February advance in the index for final demand goods can be attributed to a significant 6.8-percent increase in gasoline prices.</li>
<li>The indexes for diesel fuel, chicken eggs, jet fuel, beef and veal, and tobacco products also experienced an increase. Conversely, prices for hay, hayseeds, and oilseeds decreased by 8.3 percent.</li>
<li>When excluding volatile items such as food and energy, core PPI inched 0.3% month-over-month, down from a 0.5% acceleration in January, but above the expected 0.2%. </li>
<li>Annually, the core PPI inflation stood at 2%, above the expected 1.9%. </li>
</ul>
<h3 class="wp-block-heading">Market Reactions</h3>
Prior to the PPI report, market-implied probabilities showed a 68% chance of a Fed rate cut in June. 
Policy sensitive 2-year yields inched higher by 3 basis points to 4.66%, minutes after the report. A measure of the dollar, as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>),&nbsp;rose 0.2%. 
Futures on major U.S. indices trimmed gains during the premarket session. The Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) closed at all-time highs on Wednesday, outperforming the cap-weighted index, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>). 
Read now: <a href="https://www.benzinga.com/news/earnings/24/03/37691936/wall-street-eyes-strong-start-ahead-of-more-inflation-data-gold-bitcoin-dip-why-this-analyst-looks-">Wall Street Eyes Strong Start Ahead Of More Inflation Data, Gold &amp; Bitcoin Dip: Why This Analyst Looks Beyond AI For Growth</a>
Image created using artificial intelligence with Midjourney.

Goldman Sachs has flagged an increasing concern over the U.S. stock market&#8217;s heavy concentration and the dominant sway of its largest tech stocks, urging investors to broaden<a href="https://www.benzinga.com/news/global"> their geographical diversification.</a> 
According to Goldman Sachs equity analyst Ben Snider, &#8220;Concentration within the US equity market has surged to a multi-decade high,&#8221; with the 10 largest U.S. stocks now representing &#8220;33% of S&amp;P 500 market cap and 25% of S&amp;P 500 earnings.&#8221;
This level of market concentration, the highest in decades, has skewed overall market performance, propelling the S&amp;P 500 by 30% over the past year, while the median index constituent, as tracked by the Invesco S&amp;P 500 Equal-Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) only saw an 11% rise. The phenomenon has sparked widespread anxiety among the investment bank&#8217;s clients, wary of the &#8220;extreme current degree of market concentration&#8221; as unprecedented in recent history.
Peter Oppenheimer, Goldman Sachs&#8217; chief global equity strategist, underscored the fleeting nature of corporate dominance, noting, &#8220;dominant companies rarely stay the best performers over long periods of time.&#8221; 
Historical data supports this claim. Just over 10% of the Fortune 500 companies from 1955 maintain their status to the present day. This sheds light on the potential risks of over-concentration in today&#8217;s market giants.
A Call for a Barbell Strategy: Despite high concentration, today&#8217;s companies are not valued like those from the dot-com era. The current U.S. top 10 stocks boast higher profit margins and return on equity (ROE) than their predecessors. Valuations, while robust, are justified by their superior returns on capital.
However, Goldman Sachs noted that &#8220;investors face a flatter trajectory for equity markets over the next few years as a higher cost of capital and less globalization mean lower returns.&#8221;
Analysts advised investors to adopt a &#8220;barbell approach&#8221; to investing. This strategy recommends a mix of defensive companies with strong balance sheets, mature cash-generative firms, and smaller-cap entities with lower valuations.
Spotlight on Japan: Japan emerged as a particularly promising market. Goldman Sachs sees it as a &#8220;restructuring opportunity&#8221; where the bank is overweight. 
Moreover, investors favor the healthcare sector — excluding Japan — for its combination of relative cheapness. It also has high growth potential, likely to benefit from advancements in AI technology. 
European GRANOLAS, a group of 11 major companies in the STOXX 600 –&nbsp;including GSK plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>), Roche Holding Ltd (OTCPK: RHHBY), ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) , Nestle S.A. (OTCPK: NSRGY), Novartis AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVS#NYSE">NVS</a>), Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>), L&#8217;Oréal Co. (OTCPK: LRLCY), LVMH-Moet Hennessy Louis Vuitton (OTCPK: LVMHF), AstraZeneca plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>), SAP SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAP#NYSE">SAP</a>), and Sanofi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNI#NASDAQ">SNI</a>) –&nbsp;are highlighted for their lower valuations compared to their U.S. counterparts and solid performance. 
&#8220;These stocks trade at a lower valuation (around 20x P/E) than the Magnificent 7 and have performed well,&#8221; Goldman Sachs wrote. &nbsp;
Read now: <a href="https://www.benzinga.com/general/biotech/24/03/37567088/novo-nordisks-game-changer-fda-approves-weight-loss-sensation-wegovy-for-heart-health-potential-i">Novo Nordisk&#8217;s Game-Changer: FDA Approves Weight Loss Sensation Wegovy For Heart Health, Potential Insurance Coverage</a>
Image: Pixabay

Top Wall Street Analysts Flag US Market Concentration Anxiety, Advise Investors To Adopt 'Barbell Approach'

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has undoubtedly emerged as the standout performer among S&amp;P 500 stocks in the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37288423/nvidia-spikes-to-2-trillion-market-cap-as-fomo-drives-traders-into-stock-the-journe">initial two months of 2024</a>.
While the Santa Clara, California-based tech company enjoyed a 60% gain, there&#8217;s a pack of lesser-trumpeted names that have quietly delivered impressive returns in their own right. 
These stocks have significantly <a href="https://www.benzinga.com/money/what-makes-the-stock-market-go-up-and-down">outpaced the broader market</a>.
Within the S&amp;P 500 index, 10 stocks have achieved returns exceeding 25% so far this year. Noteworthy among them are three from the Magnificent Seven subset, showcasing the enduring strength of <a href="https://www.benzinga.com/topic/magnificent-seven">mega-cap tech players.</a>
In contrast, the median S&amp;P 500 stock, tracked by the S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), has eked out a modest 3% return, while the market-cap weighted SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has posted a more substantial 7% surge.
<h3 class="wp-block-heading">Top 10 Performing S&amp;P 500 Stocks (As Of Feb. 29, 2024)</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>YTD Return</td>
<td>Market Cap</td>
</tr>
<tr>
<td>NVIDIA Corporation </td>
<td>60.02%</td>
<td>$1,950.35B</td>
</tr>
<tr>
<td>Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>43.31%</td>
<td>$53.04B</td>
</tr>
<tr>
<td>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>38.14%</td>
<td>$1,246.58B</td>
</tr>
<tr>
<td>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>29.17%</td>
<td>$307.66B</td>
</tr>
<tr>
<td>Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>)</td>
<td>29.03%</td>
<td>$677.07B</td>
</tr>
<tr>
<td>Ralph Lauren Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RL#NYSE">RL</a>)</td>
<td>28.37%</td>
<td>$11.83B</td>
</tr>
<tr>
<td>Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>)</td>
<td>28.27%</td>
<td>$10.83B</td>
</tr>
<tr>
<td>Catalent, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>)</td>
<td>28.24%</td>
<td>$10.41B</td>
</tr>
<tr>
<td>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>)</td>
<td>28.18%</td>
<td>$163.88B</td>
</tr>
<tr>
<td>Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>)</td>
<td>25.12%</td>
<td>$11.96B</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">What Wall Street Thinks&#8230;</h3>
Investors are likely considering whether the top-performing stocks still offer room for further growth, given their already impressive returns.
A reliable measure to gauge this potential is comparing the current stock price with the 1-year median price target projected by Wall Street analysts.
Among the top 10 S&amp;P 500 stocks year-to-date, Uber Technologies stands out with the largest potential upside to its median price target, showing a significant difference of 13.8%. Catalent follows closely behind, boasting a 10% potential upside, while Nvidia still maintains a respectable 7% upside compared to its median price target.
However, it&#8217;s worth noting that there are other stocks within the S&amp;P 500 index showing even more substantial potential upside.
Here&#8217;s a summary of the significant disparities between current market prices and Wall Street analysts&#8217; forecasts within a one-year horizon.
<h4 class="wp-block-heading">Top 10 S&amp;P 500 Stocks By Upside Potential Vs. Wall Street&#8217;s Price Target</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>1-Year Price Target (Med) vs Current Price</td>
</tr>
<tr>
<td>Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>)</td>
<td>54.73%</td>
</tr>
<tr>
<td>Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>)</td>
<td>46.80%</td>
</tr>
<tr>
<td>Caesars Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NYSE">CZR</a>)</td>
<td>45.11%</td>
</tr>
<tr>
<td>The AES Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AES#NYSE">AES</a>)</td>
<td>43.79%</td>
</tr>
<tr>
<td>Insulet Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>)</td>
<td>43.12%</td>
</tr>
<tr>
<td>First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>)</td>
<td>41.12%</td>
</tr>
<tr>
<td>Schlumberger Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td>
<td>41.03%</td>
</tr>
<tr>
<td>Carnival Corporation &amp; pIc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>)</td>
<td>38.85%</td>
</tr>
<tr>
<td>Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>)</td>
<td>36.04%</td>
</tr>
<tr>
<td>Baker Hughes Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NYSE">BKR</a>)</td>
<td>35.75%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">What Reddit Users Think&#8230;</h3>
A method for gauging social sentiment among U.S. stocks is provided by the VanEck Social Sentiment ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUZZ#NYSE">BUZZ</a>). 
This fund allocates investments to companies that exhibit favorable insights gathered from various online sources, such as social media platforms, news articles, blog posts, and other alternative datasets.
Below, a table highlights the top 10 holdings within the BUZZ ETF, along with their year-to-date performance:
<h3 class="wp-block-heading">Most-Loved Stocks By Social Users</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>Weight In Buzz ETF</td>
<td>YTD Return</td>
</tr>
<tr>
<td>Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td>
<td>4.36%</td>
<td>16.00%</td>
</tr>
<tr>
<td>MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>)</td>
<td>3.42</td>
<td>61.51</td>
</tr>
<tr>
<td>Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>)</td>
<td>3.37</td>
<td>203.07</td>
</tr>
<tr>
<td>NVIDIA Corporation</td>
<td>3.21</td>
<td>60.06</td>
</tr>
<tr>
<td>SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>)</td>
<td>3.16</td>
<td>-9.55</td>
</tr>
<tr>
<td>PayPal Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>)</td>
<td>3.09</td>
<td>-1.68</td>
</tr>
<tr>
<td>Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>3.07</td>
<td>-19.05</td>
</tr>
<tr>
<td>Advanced Micro Devices, Inc.</td>
<td>3.00</td>
<td>29.65</td>
</tr>
<tr>
<td>Meta Platforms, Inc.</td>
<td>2.96</td>
<td>38.49</td>
</tr>
<tr>
<td>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>2.93</td>
<td>15.23</td>
</tr>
</tbody>
</table>
</figure>
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37402333/exclusive-magnificent-7-takes-center-stage-in-roundhills-expanded-etf-lineup-with-i">EXCLUSIVE: Magnificent 7 Takes Center Stage In Roundhill&#8217;s Expanded ETF Lineup With Inverse And Leveraged Options</a>
Image: Midjourney

Top Stocks Not Named Nvidia You Need To Know About In 2024: Here's What Investors Think About Them (Wall Street Vs. Reddit)

U.S. stocks could see a pause on Friday as traders take a breather following <a href="https://www.benzinga.com/news/earnings/24/02/37279701/investor-optimism-improves-further-s-p-500-settles-at-record-high" target="_blank" rel="noreferrer noopener">the impressive rally</a> on Thursday, sparked by Nvidia Corp.&#8217;s (NVDA) strong quarterly results. Additionally, comments from Federal Reserve Governor Lisa Cook after the market closed reinforced the central bank&#8217;s stance of holding off on rate cuts until inflation shows a sustained decline. Cook emphasized the need for greater confidence in inflation converging towards the 2% target before considering rate cuts.
The lack of significant economic data on Friday might lead to indecision among traders, particularly as they absorb Thursday&#8217;s gains.
Thursday&#8217;s Market Recap:
Nvidia&#8217;s earnings ignited a significant upward surge in the markets on Thursday. Major indices opened higher with a gap and maintained steady growth throughout the session. Economic data presented mixed signals, with manufacturing activity exceeding expectations in February while the service sector showed a slowdown.
Other notable data points included a surprise decline in weekly jobless claims and slightly higher-than-expected existing home sales for January.
The Nasdaq Composite closed above the 16,000 mark for the first time since Nov. 19, 2021, while the S&amp;P 500 Index and the Dow Jones Industrial Average reached new record highs.
The market witnessed broad-based strength, except for defensive utility stocks which closed lower. IT stocks led the gains, followed by communication services, consumer discretionary, industrial, healthcare, and financials.
Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, observed that 55 stocks, representing 10% of the S&amp;P 500 companies, reached new all-time highs, including several bellwether stocks. He also noted that the&nbsp;Health Care Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>),&nbsp;Health Care Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and&nbsp;VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) achieved new 52-week highs, along with the&nbsp;Invesco S&amp;P 500 Equal Weight ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>).
Tentarelli characterized the market movement as &#8220;a very constructive breakout,&#8221; further confirmed by the S&amp;P 500 Advance-Decline line reaching a new record high, indicating broad market participation.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+2.96%</td>
<td>16,041.62</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+2.11%</td>
<td>5,087.03</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.13%</td>
<td>38,612.24</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.96%</td>
<td>2,013.84</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> Analyst Color:</figcaption></figure>
After Thursday&#8217;s Nvidia-induced rally, an analyst began factoring in the possibility of the market outperforming even if the Fed does not cut rates. &#8220;The major catalyst for markets, absent rate cuts throughout the year, would by necessity be earnings, and here NVIDIA wowed investors and traders alike. AI came to life for global markets wondering if it was just a passing phase,&#8221; said Quincy Krosby, Chief Global Strategist at LPL Financial.
Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, did not agree with Krosby. &#8220;We expect the momentum to continue and for markets to melt up in the short run, but the story of the stock market for this year will eventually be about the economy (e.g. whether or not we go into recession) and the Federal Reserve (e.g. whether they cut interest rates or perhaps even raise them again),&#8221; he said.
Futures Today
 Futures Performance On Friday (as of 7:05 am ET)
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.10%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.02%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.12%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.33%</td>
</tr>
</tbody>
</table>
</figure>
<a href="https://www.benzinga.com/premarket/">In premarket trading</a> on Friday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.07% to $507,86 and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged down 0.02% to $438, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Upcoming Economic Data:
No economic report of significance is due for Friday.
See Also: <a href="https://www.benzinga.com/money/best-brokers-futures-traders">Best Futures Brokers</a>
Stocks In Focus:
<ul>
<li>Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>) shares rose over 16% <a href="https://www.benzinga.com/premarket">in premarket trading</a> after the Jack Dorsey-led company reported a surprise profit for its fourth quarter.</li>
<li>Other companies moving on earnings are Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>) (up over 31%), Insulet Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>) (down over 3.6%), Maravai LifeSciences Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVI#NASDAQ">MRVI</a>) (up over 21%), Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) (up about 3.75%), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>) (down over 8.75%), MercadoLibre, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>) (down over 7%) and Noble Corp Plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>) (down over 4%).</li>
<li>E.W. Scripps Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SSP#NASDAQ">SSP</a>), Bloomin&#8217; Brands, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMN#NASDAQ">BLMN</a>) and Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) are among the notable companies due to report their <a href="https://www.benzinga.com/calendars/earnings">quarterly results ahead of the market open.</a></li>
<li>Nvidia rose over 1.40%, extending the momentum from the previous session.</li>
</ul>
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures slipped 1.63% to $77.33 in early European session on Friday, giving back all of the 0.90% gain it made on Thursday. The benchmark 10-year Treasury note rose 0.008 percentage points at 4.335%. 
The buoyancy seen in Asia ahead of Nvidia&#8217;s earnings tempered on Friday, with the domestic markets ending on a mixed. The Japanese market remained closed on account of a public holiday. While Hong Kong, India, Indonesia and Singapore receded, the rest of the markets posted modest gains, led by the Chinese market. 
Economic data out of China showed that the year-over-year decline in property prices accelerated in January and this potentially increased hopes of more stimulatory measures from the government.
European markets traded mixed by late-morning trading on Friday. The German market was marginally higher after final estimates confirmed that the country&#8217;s economy contracted by 0.3% in the fourth quarter. The U.K. market fell, while France&#8217;s CAC 40 was up moderately. The Euro STOXX 50 rose 0.25% at the last check.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37265770/retail-traders-are-extra-bullish-charles-schwab-survey-shows-52-eye-single-stock-pu">Retail Traders Are Extra Bullish: Charles Schwab Survey Shows 52% Eye Single Stock Purchases In Q1</a>
Image made via AI on MidJourney

Nasdaq, S&P 500 Set for Mixed Open After Nvidia Euphoria: Analyst Picks Major Market Catalyst This Year If There Are No Rate Cuts

Bank of America Chief Market Strategist Michael Hartnett has drawn a compelling parallel between the current surge in the U.S. &#8220;Magnificent Seven&#8221; stocks and historical market bubbles dating back <a href="https://www.benzinga.com/topic/michael-hartnett">to the 18th century.</a>
Hartnett&#8217;s insights reveal that while every bubble is unique, they share common catalysts such as technological innovation, new markets and, notably, central bank easing. These elements have historically converged to inflate asset prices beyond sustainable levels.
The AI bubble, for example, was ignited by the Federal Reserve&#8217;s response to Silicon Valley Bank&#8217;s collapse and the subsequent rise of ChatGPT. This scenario mirrors past bubbles such as the Plaza Accord&#8217;s effect on Japan and the internet bubble fueled by the Long-Term Capital Management (LTCM) crisis. 
Similarly, policy stimuli in response to the COVID-19 pandemic inflated crypto and tech stocks, reminiscent of the Mississippi and South Sea Company bubbles sparked by changes to English usury laws in 1714.
<h1 class="wp-block-heading">Magnificent 7 vs. Historical Market Bubbles</h1>
The Magnificent Seven is a moniker for today&#8217;s leading U.S. tech giants: Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). These companies&#8217; stocks have seen an astonishing 140% gain in the past 12 months. 
This surge is approaching historic proportions, nearing the 180% rise of the Dow Jones in the 1920s, surpassing the 150% gains of the Nifty 50 in the &#8217;70s and Japan&#8217;s stocks in the &#8217;80s, but still shy of the 190% increase during the internet bubble and the 230% surge in <a href="https://www.benzinga.com/money/faang-stocks">FAANG stocks</a> from COVID-19 pandemic lows.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="401" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37-1024x401.png" alt="" class="wp-image-219314" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37-1024x401.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37-300x118.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37-768x301.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37-1536x602.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104458/image-37.png 1858w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Source: Bank of America
<h1 class="wp-block-heading">The Inevitable Pop: Rising Treasury Yields as the Harbinger</h1>
A significant concern highlighted by Hartnett is the concentration of market gains. 
The top five stocks have contributed to 75% of the S&amp;P 500&#8217;s year-to-date (YTD) gains, with the top three tech stocks alone accounting for 90% of the tech sector&#8217;s YTD growth. 
Furthermore, the current &#8220;breadth&#8221; of the U.S. equity market, measured by the ratio between the cap-weighted S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), and the equal-weighted S&amp;P 500, as tracked by the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), is at its worst level since March 2009.
Historically, rising Treasury bond yields have signaled the peak and subsequent pop of market bubbles. 
Hartnett notes that in 12 of the 14 bubbles observed, increasing yields were a precursor to a market downturn. Given the global debt&#8217;s current unprecedented levels, a modest increase in 10-year real rates to 2.5%-3% could precipitate the end of the current AI and Magnificent 7 mania.
Currently, the real yield on a 10-year Treasury Inflation-Protected Security (TIPS) stands at approximately 2%, a figure that has not yet reached the threshold anticipated by Hartnett to trigger the bursting of the Magnificent Seven&#8217;s bubble.
<h1 class="wp-block-heading">Chart: US 10-Year Real Yields Hover Around 2% As Of Mid-February 2024</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38-1024x495.png" alt="" class="wp-image-219317" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/16104738/image-38.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read Now: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/02/37178834/producer-inflation-outruns-expectations-in-january-chills-investor-bets-on-fed-rate-cu">Producer Inflation Outruns Expectations In January, Chills Investor Bets On Fed Rate Cuts</a>

Education

Treasuries

GOOGL

Magnificent 7 Stocks Trigger Concerns Of Market Overheat: Bubble Trouble?

The S&amp;P 500 index reached the significant threshold of 5,000 points just moments before the close of trading on Thursday, Feb. 8, extending its run to new all-time highs. Yet with this remarkable surge in the market-cap weighted index, there are cautionary signals when comparing the index to <a href="https://www.benzinga.com/markets">its equal-weight counterpart.</a>
Over the last year, the performance of the S&amp;P 500 index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has surged by 21%.
In stark contrast, the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) has only seen a 4% return in the same period, significantly trailing its cap-weighted counterpart.
The relative ratio between the two indices has reached levels not seen since September 2020. The forward price-to-earnings ratio for the cap-weighted index stands at 21, making it 24% more expensive than the valuation of the equal-weight index.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276-1024x495.png" alt="" class="wp-image-209951" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/08170619/SPY_RSP_2024-02-08_21-06-01_93276.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The concentration of weight in the Magnificent Seven within the S&amp;P 500 Index plays a crucial role in explaining the stark 17-percentage-point difference in performance over the last year between the two indices.
The combined weight of Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) in the cap-weighted S&amp;P 500 has surged to 29.3% of the overall index.
Together, these seven stocks have soared by nearly 80% over the last year. Remarkably, these heavyweights alone have contributed 64% of the S&amp;P 500&#8217;s returns during the same period.
<h3 class="wp-block-heading">S&amp;P 500 Performance Contributions Over The Last Year</h3>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Company</th>
<th>Weight</th>
<th>Return</th>
<th>Contribution</th>
</tr>
</thead>
<tbody>
<tr>
<td>Microsoft Corporation </td>
<td>7.24%</td>
<td>56.64%</td>
<td>+3.25 pp</td>
</tr>
<tr>
<td>Apple Inc.</td>
<td>6.65%</td>
<td>24.68%</td>
<td>+1.64 pp</td>
</tr>
<tr>
<td>NVIDIA Corporation </td>
<td>4.05%</td>
<td>213.76%</td>
<td>+3.43 pp</td>
</tr>
<tr>
<td>Amazon.com, Inc. </td>
<td>3.70%</td>
<td>69.81%</td>
<td>+1.89 pp</td>
</tr>
<tr>
<td>Meta Platforms, Inc.</td>
<td>2.42%</td>
<td>156.28%</td>
<td>+1.84 pp</td>
</tr>
<tr>
<td>Alphabet Inc. (Class A) </td>
<td>2.05%</td>
<td>46.88%</td>
<td>+0.81 pp</td>
</tr>
<tr>
<td>Alphabet Inc. (Class C) </td>
<td>1.74%</td>
<td>47.26%</td>
<td>+0.69 pp</td>
</tr>
<tr>
<td>Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>)</td>
<td>1.72%</td>
<td>28.85%</td>
<td>+0.48 pp</td>
</tr>
<tr>
<td>Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>)</td>
<td>1.35%</td>
<td>117.94%</td>
<td>+0.91 pp</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>1.29%</td>
<td>116.71%</td>
<td>+0.86 pp</td>
</tr>
<tr>
<td>Tesla, Inc.</td>
<td>1.23%</td>
<td>-5.84%</td>
<td>-0.09 pp</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Security Name</th>
<th>Weight</th>
<th>Average Return</th>
<th>Total Contribution</th>
</tr>
</thead>
<tbody>
<tr>
<td>Magnificent Seven</td>
<td>29.14%</td>
<td>77%</td>
<td>+12.08 pp</td>
</tr>
</tbody>
</table>
</figure>
Despite their combined weight amounting to approximately 1.5% in the equal-weighted index, their overall performance contribution doesn&#8217;t even reach 1 percentage point.
As the S&amp;P 500 index celebrates its monumental leap to the 5,000-point milestone, investors and market observers are prompted to look beyond the surface of these record-breaking numbers.
Read also: <a href="https://www.benzinga.com/fintech/24/02/37013908/muddy-waters-shorts-fairfax-financial-holdings-not-the-berkshire-hathaway-of-canada">Muddy Waters Shorts Fairfax Financial Holdings: &#8216;Not The Berkshire Hathaway Of Canada&#8217;</a>

Short Sellers

AVGO

S&P 500 Hits 5,000 Milestone, Yet Concerns Of Overvaluation Versus Its Equal-Weight Counterpart Mount

The fastest easing of financial conditions in history could leave markets offsides if the expected ideal economic scenario fails to materialize, Bank of America warned in a note released on Tuesday.
The bank&#8217;s analysts observed that investors recently adopted a conflicting stance, anticipating more than five Federal Reserve rate cuts and maintaining an excessively <a href="https://www.benzinga.com/topic/inflation">optimistic view on inflation.</a>
Bank of America advised investors to be wary of the bond market&#8217;s relatively dovish position compared to the Federal Reserve. It also raised concerns that Federal Reserve rate cuts in the current year might perpetuate inflationary pressures.
Here are 10 surprises that could affect markets in 2024, according to the bank&#8217;s latest Research Investment Committee (RIC) report: 
<ol>
<li>High Bond Taxes Shifting Focus to Stocks: Investors, initially drawn to the allure of 5% yields in Treasury securities, might pivot to equities due to favorable tax treatments. BofA notes the distinction between a 37% tax on Treasury coupon payments and a 20% tax on long-term stock holdings. </li>
<li>Stable Corporate Landscape Despite 5% Rates: Despite higher default rates, the robustness of corporate debt structures, alongside substantial cash reserves and private credit availability, suggests a low likelihood of a widespread bankruptcy wave. </li>
<li>IPO Market Set for a Comeback: After a sluggish 2023, favorable macroeconomic conditions and interest rate cuts could rejuvenate the IPO market, benefiting large banks, as tracked by the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), and exchanges. </li>
<li>Japan: The Dark Horse of Developed Markets: Masashi Akutsu, BofA&#8217;s Strategist, predicts a 13% upside for Japanese equities, monitored through the iShares MSCI Japan Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>), driven by corporate reforms and attractive valuations compared to U.S. stocks. </li>
<li>Geopolitical Risks Weighing on Tech Giants: The reliance of major tech firms like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) on Taiwanese chipmakers aligns their performance closely with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>). Amid rising geopolitical risks in the region, BofA suggests a shift to more balanced equity indices, such as the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>). </li>
<li>Biotech and Pharma Poised for Growth: Following a 2023 dominated by weigh-loss drugmakers, advancements in Alzheimer&#8217;s research could propel the pharmaceutical sector, as tracked via the iShares U.S. Pharmaceutical ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>), to new heights. </li>
<li>Rationalizing Energy Investments: With renewable energy stocks underperforming, investors might turn to more traditional energy sources, recognizing the value in undervalued oil, gas, and nuclear sectors. </li>
<li>The Fragile Path to Low Inflation: Market consensus for a smooth inflation reduction could be upended by various global events, potentially leading to higher inflation scenarios. BofA warns that <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36451978/wti-crude-oil-prices-soar-on-new-years-kickoff-as-tensions-escalate-in-red-sea-be">disruptions in the Red Sea</a> represent a dangerous threat to the inflation&#8217;s perfect landing scenario that markets are pricing in. </li>
<li>Demand for Premium on Government Debt: Fading confidence in the U.S. government&#8217;s budget sustainability might lead investors to seek higher yields for long-term government bonds. </li>
<li>Renewed Affection for Free Markets: As regulatory burdens remain high, the upcoming U.S. election could spark hopes for a more business-friendly environment, boosting investor confidence in equities.</li>
</ol>
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iShares Dow Jones US Pharmaceuticals Index Fund

Bank Of America Predicts 10 2024 Market Surprises: From Booming IPOs To Japanese Equity Surge

Tuesday on Wall Street was marked by a subdued trend in major equity indices as investors remained cautious ahead of key inflation data scheduled for release on Thursday and the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36534976/earnings-season-preview-how-will-corporate-profit-outlooks-impact-markets-in-2024">kick-off of the earnings season.</a>
Among the major indices, the Nasdaq 100 outperformed with a slight 0.1% gain, while the S&amp;P 500 and the Dow Jones experienced small declines of 0.2% and 0.6% respectively. The S&amp;P 500, as tracked by the SPDR S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), slipped 0.4%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), retreated by 0.9%, partially offsetting Monday&#8217;s robust 1.9% surge.
Notable chipmakers continue to make headlines. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) soared over 3% to a new record high, reaching $539 per share. Meanwhile, peer Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) gained 2.1%.
On Monday, Federal Reserve Governor Michelle Bowman shifted her previously hawkish stance, now viewing U.S. monetary policy as &#8220;sufficiently restrictive&#8221; and signaling openness to potential interest-rate cuts as inflation eases. Treasury yields remained steady, while the U.S. dollar saw some modest gains in the forex market.
In the world of cryptocurrencies, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) experienced a slight decline of about 1%, just ahead of the eagerly anticipated SEC decision regarding the approval of a spot Bitcoin ETF, expected to be announced on Wednesday.
<h2 class="wp-block-heading">Tuesday's Performance In US Major Indices, ETFs</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Major Indices</th>
<th>Price</th>
<th>Percentage (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nasdaq 100</td>
<td>16,660.01</td>
<td>0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,752.98</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,467.67</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>194.68</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.2% lower to $473.55, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 0.6% to $374.73 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.1% higher to $405.38, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
Sector-wise, tech was the only sector avoiding losses, with the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) up 0.1%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the laggard, down 1.3%. 
On an industry level, semiconductors sharply outperformed, with the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) up 3%. Stocks in the oil and gas downstream industries fell the most, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) down 2.5%. 
<h2 class="wp-block-heading">Tuesday's Stock Movers</h2>
<ul>
<li>Shares of Juniper Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>) experienced a significant rally, jumping almost 22% on Tuesday, following reports that Hewlett Packard Enterprise (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) is approaching a deal worth $13 billion to acquire the networking equipment company. Hewlett Packard Enterprise fell 8%, reacting to the news. </li>
<li>Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) fell 0.6%, after dropping as much as 8% on Monday.</li>
<li>Sarepta Therapeutics, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SRPT#NYSE">SRPT</a>) saw a significant 11.7% increase in its stock price, continuing to gain traction following a nearly 6% surge on Monday, driven by the company&#8217;s strong preliminary results for both the fourth quarter and full-year 2023.</li>
<li>Unity Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/U#NYSE">U</a>) experienced a 7.9% decline in its stock value following the company&#8217;s announcement on Monday that it plans to reduce its workforce by 1,800 employees, constituting 25% of its total workforce.</li>
</ul>
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XLRE

Stocks Flip To Losses, Nvidia Defies Gravity, Bitcoin Pauses For A Breather: What's Driving Markets Tuesday?

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/12/28/final-trades-uber-ibm-cleveland-cliffs-and-more.html">Halftime Report Final Trades</a>,&quot; Kevin&nbsp;Simpson of Capital Wealth Planning named International Business Machines Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ibm#NYSE">IBM</a>), which has a 17 times forward multiple and a 4% <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/11/35636701/jim-cramer-says-this-tech-company-reported-a-dynamite-quarter-i-disliked-these-guys-for-"> dividend yield</a>.
IBM recently penned a definitive deal with Software AG to acquire StreamSets and webMethods for <a href="https://www.benzinga.com/markets/equities/23/12/36277125/ibm-boosts-ai-and-cloud-portfolio-with-2-13b-buyout-heres-details">&euro;2.13 billion (~$2.3 billion) in cash</a>.
Bryn Talkington of Requisite Capital Management picked Invesco S&amp;P 500 Equal Weight ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rsp#NYSE">RSP</a>).
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Jim Lebenthal of Cerity Partners said Cleveland-Cliffs Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clf#NYSE">CLF</a>) is trading around the $21 mark and is going to break through.
Nippon Steel announced a proposed acquisition of U.S. Steel. Cleveland-Cliffs previously made a proposal to acquire U.S. Steel, and said it will now re-focus its capital allocation priorities towards more aggressive share buybacks under its existing share repurchase authorization.
Joshua Brown of Ritholtz Wealth Management named Uber Technologies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>), which hit a fresh 52-week high on Thursday.
Uber Technologies is set to enter Japan&rsquo;s taxi industry with a fleet of vehicles from Elon Musk&rsquo;s Tesla. This strategic decision comes on the heels of a recent policy change by the Japanese government, opening up the <a href="https://www.benzinga.com/news/23/12/36393412/uber-teams-up-with-elon-musks-tesla-to-enter-japans-taxi-market-following-governments-ridesharing-po">nation to ridesharing services.</a>
Price Action: IBM shares gained 0.2% to close at $163.75, while Invesco S&amp;P 500 Equal Weight ETF gained 0.2% on Thursday. Cleveland-Cliffs fell 0.5% to $20.82, while Uber slipped 0.2% to settle at $63.14 during Thursday&rsquo;s session.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/12/36407128/how-to-earn-500-a-month-from-verizon-stock"> How To Earn $500 A Month From Verizon Stock </a>
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IBM, Uber, Cleveland-Cliffs And More On CNBC's 'Final Trades'

CNBC: Final Trades: IBM, UBER, CLF, RSP

The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is on the cusp of making financial history as it inches closer to becoming the first exchange-traded fund to reach the extraordinary milestone of half a trillion dollars in assets <a href="https://www.benzinga.com/markets/equities/23/12/36409413/s-p-500-nears-record-territory-even-as-momentum-slows-why-this-analyst-says-investors-may-need-t">under management (AUM).</a>
According to data from TradingView, the SPY ETF started the year with approximately $355 billion in AUM, and it is poised to conclude 2023 with a monumental milestone: crossing the $500 billion threshold. 
Launched and managed by State Street Global Advisors, Inc. (OTCPK: STTMF), the rapid growth of the largest ETF tracking the S&amp;P 500 Index has been driven by a combination of robust market performance and unprecedented inflows from investors.
Chart: SPY ETF&#8217;s AUM Skyrocketed In 2023
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1024x495.png" alt="" class="wp-image-170613" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">S&amp;P 500 Approaches All-Time Highs, Drawing Investor Flows</h2>
After soaring by 26% year to date, the S&amp;P 500 Index is rapidly approaching its all-time highs, previously achieved in January 2022. 
While this impressive 26% increase in AUM is attributable to favorable market conditions, the remaining $47 billion, pushing the ETF toward the half-a-trillion-dollar mark, can be credited to substantial inflows from investors. 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1024x495.png" alt="" class="wp-image-170624" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This influx of capital into the SPY ETF positions 2023 to potentially be its most remarkable year for inflows since its launch in 1993.
Behind this unprecedented surge in funds lies an intriguing twist. A staggering $37.5 billion has poured into the SPY ETF in December 2023 alone, elevating this month to the strongest one ever recorded in terms of inflows.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1024x495.png" alt="" class="wp-image-170626" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Other ETFs Tracking S&amp;P 500 Have Also Seen Robust Inflows</h2>
It&#8217;s worth noting that the SPY ETF is not the only fund to benefit from this wave of investor interest. Other ETFs tracking the S&amp;P 500 have also experienced a surge in capital inflows.
<ul>
<li>The iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) stands out with a remarkable $36.5 billion in inflows year-to-date, marking its most substantial annual influx and propelling its AUM to nearly $400 billion.</li>
</ul>
<ul>
<li>The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) has followed suit, recording a noteworthy $41.2 billion in inflows throughout 2023, marking its second-strongest year, surpassed only by the exceptional inflow seen in 2021.</li>
</ul>
<ul>
<li>The Invesco S&amp;P Equal-Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) has joined the ranks of success, registering a record-breaking $11.9 billion in inflows for the year, establishing a new yearly record for the fund&#8217;s influx.</li>
</ul>
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SPY ETF On Track For $500B Milestone, Boosted By S&P 500's Peak Performance, Record Inflows In 2023

On Thursday, Wall Street rebounded into positive territory, following a brief dip experienced on Wednesday. At midday trading New York time, all major stock indices were trading in the green as traders prepared for the final trading<a href="https://www.benzinga.com/markets"> week of the year.</a>
The S&amp;P 500 made a modest 0.3% gain, but its equal-weighted counterpart, the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), outperformed with a 0.5% increase. The Dow also edged up by 0.3%.
Tech stocks within the Nasdaq 100 surged by 0.5%, while small-cap stocks continued to outperform, with the Russell 2000 gaining 1%.
Long-term bond yields saw a slight increase, with the popular iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) declining by 0.6%.
The U.S. dollar, as monitored through the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), fell by 0.4%, revisiting its yearly lows, in response to <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36342747/thursdays-economic-digest-q3-gdp-revised-downward-jobless-claims-hold-steady-phil">weaker-than-expected economic data</a>. The U.S. economy expanded at an annualized rate of 4.9% in the third quarter, down from the previous estimate of a 5.2% increase.
Gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), saw a 0.5% surge, while silver gained 0.8% in reaction to the weakening dollar. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) remained stable.
<h2 class="wp-block-heading">Thursday&#8217;s Performance In US Major Indices, ETFs</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Index</th>
<th>Price</th>
<th>Percentage Change (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Russell 2000</td>
<td>2,000.71</td>
<td>1.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>16,637.75</td>
<td>0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,715.85</td>
<td>0.3%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,197.33</td>
<td>0.3%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.4% higher to $469.90, the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) was 0.3% higher to $372.01 and the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched up 0.6% to $405.34, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Sector-wise, discretionary outperformed, with the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) up 0.8%. On the negative side, the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) were both 0.3% lower. 
Among industries, solar and semiconductors were notable gainers, with the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) and the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) up 3.9% and 2%, respectively. REITs lagged, with the Vanguard Real Estate (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) down 1%. 
<h2 class="wp-block-heading">Thursday&#8217;s Stock Movers</h2>
<ul>
<li>Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) rose 6.4%, as the company reported better-than-expected earnings and revenue in the last quarter.</li>
<li>Shares of other cruise companies also experienced a surge. Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) shares climbed almost 4%, while Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) saw a 5% increase.</li>
<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) rose over 7% after posting better-than-expected results last quarter. In response, other chipmakers also gained. Shares of Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) rose over 2.5%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) inched up 1%. </li>
<li>MP Materials Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MP#NYSE">MP</a>) rocketed 9%, topping the Russell 1000&#8217;s gainers. </li>
<li>Paychex Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAYX#NASDAQ">PAYX</a>) tumbled over 6% after missing earnings estimate. </li>
<li>Warner Bros Discovery Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) and Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) fell 4% and 3.4%, respectively, after Ben Barringer, a technology analyst at Quilter Cheviot, stated the merger between these two companies will likely worsen their financial profile. </li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36346989/micron-technology-guidance-reflects-strong-pricing-rebound-10-analysts-deep-dive-in">Micron Technology Guidance Reflects Strong Pricing Rebound: 10 Analysts Deep Dive Into Q1 Earnings</a>
 Photo via Shutterstock.

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US Stocks Bounce; Chipmakers, Cruise Lines Lead, Dollar Falls: What's Driving Markets Thursday?

The S&amp;P 500 Index is up more than 5% over the past month. On an equal-weighted basis, the move is<a href="https://www.benzinga.com/markets/equities/23/12/36306556/us-etfs-surpass-8-trillion-in-assets-top-10-funds-holding-over-100b-each">&nbsp;even more impressive.</a>
What Happened: 
The Invesco S&amp;P 500 Equal Weight ETF (ARCA:RSP) made a new&nbsp;52-week low of $133.34 on Oct. 27. Since that time, the equal-weight S&amp;P has rallied&nbsp;nearly 19% to reach new 52-week highs of $158.25. The new 52-week high was made&nbsp;on Dec. 14,&nbsp;just&nbsp;33 trading days after the index hit its lows for the year.
SentimenTrader&nbsp;chief research analyst&nbsp;Jason Goepfert&nbsp;highlighted the historic rally&nbsp;in a<a href="https://twitter.com/jasongoepfert/status/1737095921958068477?s=20"> post</a>&nbsp;on the&nbsp;X platform on Tuesday.
A lot of people are saying that&nbsp;the &quot;Magnificent 7&quot;&nbsp;stocks are driving the market higher, but he called that notion &quot;a load of click-baity crap.&quot;
&quot;The S&amp;P 500 equal-weight index just cycled from a 52-week low to 52-week high in 33 days. The only time since 1957 it happened faster was in September 1982 when the average stock went on to gain 46% over the next year,&quot; Goepfert said in the post.
Related News:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36313512/small-caps-are-outperforming-everything-analyst-says-this-rallys-been-years-in-the-">Small Caps Are &#39;Outperforming Everything,&#39; Analyst Says: This Rally&#39;s Been &#39;Years In The Making&#39;</a>
Why It Matters:
The&nbsp;Invesco S&amp;P 500 Equal Weight ETF tracks each stock in the S&amp;P 500 index with the same weight, regardless of the company&#39;s size. Therefore, Apple Inc&nbsp;with a&nbsp;market cap of more than $3&nbsp;trillion carries the same weight in the ETF as a much smaller company, like Etsy&nbsp;Inc,&nbsp;which has a market cap of approximately&nbsp;$10 billion.
The broad growth and remarkable speed of the&nbsp;recent rally in the S&amp;P 500&nbsp;could mean the market is poised for another powerful move in 2024 based on&nbsp;the data&nbsp;in Goepfert&#39;s&nbsp;post. The S&amp;P 500 is up approximately 23% year-to-date after falling nearly 20% in 2022.
The S&amp;P 500 has finished positive in seven of the last 10 years.&nbsp;
RSP Price Action: The Invesco S&amp;P 500 Equal Weight ETF closed Tuesday up 0.85%&nbsp;at $157.20, according to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>.
Image: Buffik from Pixabay
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The Equal-Weighted S&P 500 Rallied From 52-Week Lows To 52-Week Highs In A Month

Heading into 2023&#39;s final week of trading, traders and investors are likely excited about an <a href="https://www.benzinga.com/markets/equities/23/12/36278247/were-in-for-a-santa-claus-rally-alright-but-it-might-be-subpar-here-are-5-reasons-why">official&nbsp;Santa Claus Rally.</a>
That&#39;s particularly the case this year, which saw the S&amp;P 500 Index&nbsp;rally a whopping 23% since 2022 ended - a positive change from the&nbsp;27.54% the stock market fell in 2022.
So, what exactly is a Santa Claus Rally, and how likely is it to occur?
<h3>What Is A Santa Claus Rally</h3>
The phenomenon, given its label by analyst and creator of the Stock Trader&rsquo;s Almanac Yale Hirsch, generally takes place during the last week of December into the first few days of January. In some years, the rally has taken place over an extended period, beginning Dec. 14 and lasting over two weeks.
Historically, during a Santa Claus Rally, the S&amp;P 500 has risen an average of 1.3%, but it doesn&rsquo;t happen every year so it isn&rsquo;t 100% predictable.
<h3>Past Santa&nbsp;Rallies</h3>
<ul>
<li>Between Dec. 20, 2021, and Jan. 4, 2022, a Santa Claus rally caused the S&amp;P 500 to surge 4.98%.</li>
<li>The year prior, between Dec. 1, 2020 and Jan. 4, 2021, the ETF spiked 2.43%.</li>
<li>Between 1960 and 2020, Santa Claus rallies happened about 66.66% of the time</li>
<li>Since 1993, the occurrence took&nbsp;place&nbsp;67% of the time, per Stock Trader&#39;s Almanac.</li>
</ul>
What&rsquo;s interesting, is that during bear markets and economic downturns, the rally can be stronger.
See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/12/36288920/goldman-sachs-predicts-continued-stock-market-rally-while-fed-advises-caution-the-spys-p">Goldman Sachs Predicts Continued Stock Market Rally While Fed Advises Caution: The SPY&#39;s Path To All-Time Highs</a>
<h3>Bear and Bull Markets</h3>
A bear market is generally recognized when the S&amp;P 500 declines more than 20% from the high of the previous bull market, whereas a bull market is recognized when the Index climbs over 20% from its bear market&nbsp;low. On Oct. 13, 2022, the S&amp;P 500 reached a low of 3,491.58&nbsp;and on May 18, 2023,&nbsp;the ETF closed at 4,202.20, up 20% from the October low, which indicated the bear market had ended.
<h3>Santa Claus Rallies In Bear Markets</h3>
A look back at the last three bear markets, beginning in 1990.
<ul>
<li>The three-month-long recession that occurred between July 1990 and October of that same year saw the S&amp;P 500 plummet 20.14%. That year, traders weren&rsquo;t gifted a Santa Rally, and the S&amp;P 500 declined 6.27% between the weeks beginning Dec. 17 and Jan. 7.</li>
<li>The bear market that started in 2000, which was brought on by the collapse of the housing market, lasted a whopping 33 months, occurring between January&nbsp;2000 and October&nbsp;2002. Over the holiday period, between Dec. 26, 2000 and Jan. 2, 2001, the S&amp;P 500 spiked up 2.62% before continuing in its downtrend. The following year, between Dec. 17 and Dec. 31, the ETF rose 4.47%.</li>
<li>The Great Recession, which lasted for 17 months between October 2007 and March 2009, saw two Santa Rallies take shape &ndash; a 1.32% jump during the week beginning Dec. 17, 2008, and 6.81% surge higher over the week beginning Dec. 29, 2008.</li>
<li>During the last five trading days of 2022&#39;s bear market and the first two days of 2023, the S&amp;P 500 rose 0.8%, falling short of what can be considered an official Santa Claus Rally.&nbsp;</li>
<li>Santa Claus Rallies In Bull Markets</li>
<li>While Santa rallies have taken place during bear markets, their occurrence at the end of a bear market or during a bull market is considered to be an indication that the stock market will continue to rise during the following year.&nbsp;</li>
<li>The Santa Claus Rallies of 2008 and 2018 predicted strong bull markets in 2009 and 2019 and out of the 23 times the stock market has spiked higher during the Santa Rally period since 1994, the S&amp;P 500 has risen 18 times over&nbsp;the following year.</li>
</ul>
<h3>Theory Behind The Phenomenon</h3>
A number of catalysts may contribute to the rally:
<ul>
<li>The end of &ldquo;tax-loss-selling season,&rdquo; which begins during the fourth quarter, when traders and investors sell losing positions to minimize capital gains from profits in the stock market, the housing market, or other income sources.</li>
<li>The receipt of holiday bonuses that traders and investors may decide to invest because the bonus is viewed as &ldquo;extra money.&rdquo;</li>
<li>A period driven by retail traders, who generally have a bullish bias, while Wall Street investors have largely left their desks for vacation.</li>
<li>The expectation that a rally will take place, which causes a high number of traders and investors to buy stocks, resulting in a self-fulfilling prophecy.</li>
</ul>
A Look At The Odds
Santa Claus rallies have taken place 58 times over the last 73 years, which means they happen about 80% of the time. While traders and investors haven&#39;t quite entered the official Santa Claus Rally period this year, the S&amp;P 500 has risen about 0.85% since Dec. 14 and on Tuesday, the Index was climbing toward its previous all-time high of 4,818.62.
Investors aiming to capitalize on a potential S&amp;P 500 uptrend have several ETF options, such as the SPDR S&amp;P 500 ETF Trust (ARCA:SPY), the largest ETF globally, as well as the Vanguard S&amp;P 500 ETF (ARCA:VOO) and the Invesco S&amp;P 500 Equal Weight ETF (ARCA:RSP)
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/equities/23/12/36306556/us-etfs-surpass-8-trillion-in-assets-top-10-funds-holding-over-100b-each">US ETFs Surpass $8 Trillion In Assets: Top 10 Funds Holding Over $100B Each</a>
Photo: Shutterstock

Santa Claus Rally Time: The Odds Of Holiday Market Cheer In 2023

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Stocks finished mostly lower today, with the Russell 2000 dropping by 20 basis points and the S&P 500 EQUAL Weight ETF (RSP​​​​​​​) dropping by 40 bps.

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In this video, we'll ask and answer six key questions for stock market bulls.


Maria Elvira SalazarHouse (R-FL)	$1K - $15K	Purchase	May 31, 2023	Apr 13, 2023	House
Tommy TubervilleSenate (R-AL)	$15K - $50K	Purchase	Sep 15, 2022	Aug 01, 2022	Senate

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