Concern about valuations, rates and slowing economic growth led to an ugly week for shares.
A sale in the beautiful seven trade pushed the Nasdaq Composite (^IXIC) to a correction area. The index closed the week by 3.6%, while the S&P 500 (^GSPC) has recorded the worst weekly performance since September.
Close: March 7 at 4:43:27 PM Est
^GSPC ^Ixic
But before investors it was hightail, strategists told me that it is not yet time to panic and stack into the recession trade. They rather see the recent sale as a shopping option, as long as investors are willing to watch Beyond uncertainty from Washington, DC
“We get a correction once every 12 months, and this time it is encouraged by the rates,” Nancy Tengler or Tenger Investments told me. “If they are short -lived, this is just a chance to buy shares for the long term.”
And according to Tengler, technology and financial data are among the two transactions that stand out.
“The defensive trade is exactly that, a trade,” she noticed. “We love financial data … and explode the usage scenarios for AI. This is an industrial revolution as we have not seen for 100 years … Use the weakness to add to your participations.”
Valuation corrections combined with strong income also make the group more attractive. Losing market hood Losing from NVIDIAs (NVDA) Record High In January, $ 1 trillion in value during Friday’s trade reached. Recently the chips giant announced Fourth quarter That included a jump of 82% on an annual basis in the profit per share.
Close: March 7 at 16:00:01 pm Est
NVDA Tsla
“Rates add uncertainty, but it does not change the demand cycle,” wedbush’s then Ives told me on the morning assignment of Yahoo Finance. “This is not going to put an end to the technical bull market; It is a fear, but I see more opportunities than a reason to go to the hills. “
Ives repeated his position that Seven Stocks Nvidia, Microsoft (MSFT), Alphabet (Googl, Googl, Gozon (AMZN) and Tesla (TSLA) companies remain companies to possess, together with Palantir (PLTR) and Salesforce (CRM), and claims that “every weakness.”
Another under -performance sector that draws attention this week is financial data. The KBW Nasdaq Bank Index (^BKX) erased its rally after the elections and descended almost 13% from its recent peak as a concern about a weakening economy and slow dealing on the sector.
However, strategists claim that the most important catalysts for the sector remain intact after the head of the headline: deregulation, attractive ratings and the prospect of lower interest rates.
Close: March 7 at 5:15:59 PM Est
Keith Lerner van Truist, who recently reduced shares from attractive to neutral, maintains his “attractive” prospect of financials (XLF). In a memorandum for customers, Lerner wrote the group “should benefit from pro-growth policy, deregulation and a pick-up in mergers and acquisitions.”
