Equities finished higher yesterday, with the QQQ and SPY both posting gains as tech led the way. Gold edged slightly higher while treasury yields remained relatively stable, suggesting a continued appetite for risk assets heading into today. The market is cautiously optimistic as we await key inflation data.
Technology (XLK) continues to demonstrate strong momentum, supported by ongoing AI enthusiasm and positive earnings reports. Communication Services (XLC) showed resilience yesterday and could benefit from broader market strength, while we anticipate continued pressure on the lagging Materials (XLB) and Industrials (XLI) sectors.
We're watching Arista Networks (ANET) after its recent price strength and Nokia (NOK) given broader telecom sector developments.
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