S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Is Market Sentiment Turning More Cautious?
Wall Street and the broader tech market are taking a breather today. Interestingly, however, today’s declines aren’t particularly large, but they do show that capital isn’t fleeing—it’s simply rotating into other sectors of the economy.
The US100 is losing momentum and falling below its recently reached all-time highs. Looking at the VWAP anchored at the beginning of the year, we see that the hypothetical range of the downward correction is as much as 3.5%, calculated from the current price to the VWAP point. This is, of course, only a theory, as the aforementioned correction may turn out to be only short-term in nature. In the long term, we remain in a relatively strong uptrend. Source: XTB
Healthcare and energy companies (especially those not particularly closely tied to AI) are leading the market today. The S&P 500 is up. Source: XTB
On the other hand, companies included in this year’s Momentum sub-indices—namely, memory and advanced AI chips—are underperforming. ARM shares are down nearly 8% today. Source: XTB
What accounts for this market behavior?
There could be three reasons. First, this is a matter of pure chance (which is difficult to analyze objectively), second, the market is pricing in the macroeconomic environment amid high interest rates (several Fed officials made relatively hawkish comments today, confirming that further rate hikes are very much possible), which historically has favored defensive stocks. And third, we’re seeing a partial rebound from the gains and losses that we’ve observed to a greater extent in select stocks over the past few trading sessions. News regarding Oracle and Bloom Energy may be playing a role in this area, which primarily affects market sentiment. The American tech giant Oracle Corp (ORCL.US) has taken legal action to protect itself from the costs of delays in the construction of a massive data center in New Mexico, which will largely be responsible for creating a favorable environment for the further developent of AI.
