Join Josh Brown, a savvy market strategist, Joe Chernova, an analytical powerhouse, and Brian Belsky, a tech stock expert, as they dive into the tech sector's resurgence. They discuss the NASDAQ 100's recent performance and highlight opportunities in lesser-known tech stocks. The team critically analyzes healthcare investments, contrasting Gilead's uplifting outlook with Merck's struggles. Additionally, they examine the shift towards private market investments and share strategic insights for navigating market volatility while emphasizing long-term investment strategies.
The technology sector is rebounding stronger than anticipated, with major companies like Apple and NVIDIA driving renewed investor confidence.
Communication stocks are reaching new highs, showcasing broader market interest and opportunities beyond just the traditional tech giants.
Deep dives
Resilience of the Stock Market
The current stock market demonstrates notable resilience, highlighted by the nearing new closing high for the S&P 500 and the NASDAQ 100's recent performance. The volatility index, or VIX, which spiked above 20 on multiple occasions, has seen a retreat toward 15, indicating improved market stability. With growth in several key sectors such as financials, materials, and industrials, investors find a compelling case across various asset classes. This diversified strength marks a shift from previous years where opportunities were more limited.
Technology Sector's Reawakening
The technology sector is experiencing a resurgence, with significant gains from major players such as Apple and NVIDIA driving momentum. Analysts note that concerns around the earnings performance of large-cap tech companies may have been overstated, as growth rates are actually rebounding better than expected. This renewed confidence in tech stocks is apparent with a broader participation in positive market movements across the sector. Consequently, investments in tech remain an attractive option for those looking to capitalize on its potential growth.
The Role of Communication Stocks
Communication stocks are witnessing remarkable performance, with many names reaching new highs, indicative of broader market interest beyond just tech giants. The sector has seen significant growth, with companies like Liberty Formula One and Netflix making noteworthy strides. Moreover, the communication sector outpaces others in terms of the percentage of companies achieving new 52-week highs. This trend highlights the diversification available to investors seeking opportunities beyond the often-discussed big tech narratives.
Global Market Dynamics
Investors are increasingly aware of opportunities beyond the U.S. market, with European and Asian equities showing promising performance. Reports indicate that markets in Europe, such as the DAX and FTSE 100, are in a robust uptrend, with a high percentage of stocks surpassing their 50-day moving averages. As institutions streamline their portfolios and look for diverse avenues for growth, focus on international markets is gaining traction. Investors are encouraged to consider large-cap stocks in these regions as potential vehicles for capital appreciation.
Scott Wapner and the Investment Committee debate tech’s re-emergence as the NASDAQ 100 looks to build on its best week of 2025. Plus, the desk debate the latest Calls of the Day on Merck and Gilead. And later, the Committee give you The Setup on some key names reporting this week.