economy
Stocks keep the rally going and oil tumbles. Here's why we have some trepidation
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- The S&P 500 is up more than 2%, and the Nasdaq 100 has seen a 10-session winning streak, rising about 12%.
- Overbought conditions and the length of the win streak suggest trimming positions rather than adding new investments.
- U.S. oil prices dropped around 7% due to discussions between Washington and Tehran on peace talks.
- The energy sector was the worst performing sector, with the State Street Energy Select ETF (XLE) erasing its Iran war gains.
- The decline in oil prices coincides with a slide in interest rates, with the 10-year Treasury note yield retreating to 4.26%.
- Several 'Magnificent Seven' stocks, including Amazon, Meta Platforms, Alphabet, Microsoft, and Nvidia, saw gains, while Apple experienced a slight decline.
- Upcoming earnings reports include Morgan Stanley, Bank of America, ASML, and PNC, with ASML's report being crucial for AI buildout investors.
- The Investing Club provides trade alerts with specific waiting periods before executing trades based on Jim Cramer's actions on CNBC TV or in his charitable trust.