Heading into today’s open, the Nasdaq 100 (QQQ) closed yesterday at $747.58, down -0.85%. The S&P 500 (SPY) finished at $773.93, a -0.12% move, as the 10-Year Treasury Yield currently stands at 5.23%. This week's pullback in tech coincides with earnings season kicking off, potentially creating sector-specific opportunities.
This week we're leaning into Semiconductors (SMH) and Growth/Tech (QQQ) as our top picks. Semiconductors (SMH) is showing strong 1-month momentum at +8.4%, trading above its 50-day trend. Growth/Tech (QQQ) also demonstrates positive momentum with a +5.5% 1-month return, likewise above its 50-day trend, suggesting continued demand for large-cap tech.
Last week’s sectors saw varied performance. Industrials posted a return of +2.8%, while Real Estate lagged with a -1.7% return. Consumer Staples showed modest gains at +0.5%.
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