It was a volatile week for the markets as the S&P 500 closed down seven points at 6,932. Monday started off on a good note as hot artificial intelligence infrastructure stocks led the S&P 500 to a half percentage point gain. However, on Tuesday major market averages sold off as investors gravitated out of riskier growth names and toward cyclical stocks like Walmart. That set the stage for a second down day on Wednesday, and a greater than 1 % loss on Thursday for the S&P 500, with it closing below 6,800. Over those two days software stocks were pummeled as fears of AI disruption in the industry had investors rotating out of technology en masse. By the end of Thursdays trading session, however, many investors suspected the sell-off was overdone, and argued it could be time to buy the dip as they saw the S&P 500 close below its lower Bollinger Band channel. At Fridays open technology stocks recovered following those three days of heavy selling, and bitcoin rebounded following a rout that took the popular cryptocurrency down more than 50% at one point. That said, S&P 500 closed strong at its highest level of the session, up nearly 2% for the day. However, topping that was the Dow 30 as it rose 2.5% on the week, exceeding the 50,000 level for the first time ever. From a technical standpoint, the was a big delta between the Dow 30 and the S&P 500s weekly returns. Thats because approximately 25% of the S&P 500s market cap is in the Mag 7 growth stocks. Weve mentioned this before, but the S&P 500 has been rangebound since the beginning of December, getting close to closing above 7,000, but then retreads with sell-offs. Hopefully well see a breakout soon, but were getting closer to the end of earnings season, so..For next week we get the payrolls and unemployment numbers on Wednesday, followed by inflation data on Friday. For TSP TIPS the I remains at the top of the Performance Ranking leaderboard, has a maxed out Composite Score of 100, and made a new record high on Friday. Meanwhile, the C and S funds continue their battle for the runner up position. As such, we recommend no changes to our current investment mixes.
It was a volatile week for the markets as the S&P 500 closed down seven points at 6,932. Monday started off on a good note as hot artificial intelligence infrastructure stocks led the S&P 500 to a half percentage point gain. However, on Tuesday major market averages sold off as investors gravitated out of riskier growth names and toward cyclical stocks like Walmart. That set the stage for a second down day on Wednesday, and a greater than 1 % loss on Thursday for the S&P 500, with it closing below 6,800. Over those two days software stocks were pummeled as fears of AI disruption in the industry had investors rotating out of technology en masse. By the end of Thursdays trading session, however, many investors suspected the sell-off was overdone, and argued it could be time to buy the dip as they saw the S&P 500 close below its lower Bollinger Band channel. At Fridays open technology stocks recovered following those three days of heavy selling, and bitcoin rebounded following a rout that took the popular cryptocurrency down more than 50% at one point. That said, S&P 500 closed strong at its highest level of the session, up nearly 2% for the day. However, topping that was the Dow 30 as it rose 2.5% on the week, exceeding the 50,000 level for the first time ever. From a technical standpoint, the was a big delta between the Dow 30 and the S&P 500s weekly returns. Thats because approximately 25% of the S&P 500s market cap is in the Mag 7 growth stocks. Weve mentioned this before, but the S&P 500 has been rangebound since the beginning of December, getting close to closing above 7,000, but then retreads with sell-offs. Hopefully well see a breakout soon, but were getting closer to the end of earnings season, so..For next week we get the payrolls and unemployment numbers on Wednesday, followed by inflation data on Friday. For TSP TIPS the I remains at the top of the Performance Ranking leaderboard, has a maxed out Composite Score of 100, and made a new record high on Friday. Meanwhile, the C and S funds continue their battle for the runner up position. As such, we recommend no changes to our current investment mixes.