Volatility in major tech stocks, driven by AI excitement, has declined as the U.S. bond market gains attention with 10-year Treasury yields nearing 5%. This shift reflects growing investor concern over inflation, higher oil prices, and Federal Reserve policies rather than company-specific news. Energy stocks are outperforming tech, with crude oil prices surpassing $100, while volatility in most stocks has decreased following the end of earnings season. The market is now more influenced by macroeconomic and geopolitical factors than by the previous AI-driven tech surge.
Piper Sandler's Craig Johnson highlights a market rotation from traditional AI leaders to industrials like Caterpillar, driven by rising 10-year Treasury yields nearing 5%. This shift reflects a broader move where industries with heavy labor and low ...
Energy ETFs Energy Select Sector SPDR (XLE) and SPDR S&P Oil & Gas E&P ETF (XOP) are rated strong buys as their valuations reflect long-term oil prices around $67.50 per barrel, which is below current spot prices above $90. This year, these ETFs have...
