• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Major Shifts Taking Place As Lower Rate Bets Increase
Stock

Major Shifts Taking Place As Lower Rate Bets Increase

by May 18, 2024
by May 18, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Both the S&P 500 and the NASDAQ are sitting at new highs as we wind down a very positive earning season. So far, almost 80% of S&P 500 companies have reported a positive earnings surprise, with the year-over-year earnings growth rate at the highest level since Q2 of 2022.

Amid this corporate growth, we’re now seeing interest rates pull back following Wednesday’s core CPI data, which came in lower than expected. In response, the yield on the key 10-year treasury bond fell to as low as 4.3% before ticking higher into today’s close.

This is great news for growth stocks such as Technology, which have been struggling as the markets march to new highs. A rising rate environment is a negative for growth stocks such as Technology.

Daily Chart of Technology Sector (XLK)

While Apple’s (AAPL) 12% advance following the release of their earnings 3 weeks ago is certainly a factor in Technology’s new uptrend, a reversal in both Semiconductor and Software stocks this past week is poised to be the latest driver.

As subscribers to my MEM Edge Report are aware, I’ve been on the lookout for renewed interest in these high growth areas, as our watchlist had top Semi and Software names that have now been added to the suggested holdings list.

Daily Chart of Semiconductor Group (SOXX)

Daily Chart of Software ETF (IGV)

Next week could prove to be pivotal for these groups amid earnings reports from key players. Most impactful will be Nvidia (NVDA), which is due to report earnings next Wednesday after the markets close. Going into the report, analysts are anticipating significant revenue growth, driven primarily by their data center segment due to AI demand.

Among Software stocks, Palo Alto (PANW) is due to release their quarterly results after the market closes on Monday. The Software Security stock is recovering from a gap down in price after their last quarterly report, where management announced a product release shift. PANW has entered a new uptrend as it moves closer to closing its gap lower.

Other non-growth sectors have also been moving into favor amid increased AI growth prospects and a lower interest rate possibility. If you’d like to be tuned into these newer areas, as well as the stocks best positioned to take advantage, use this link here to trial my twice-weekly MEM Edge Report for a nominal fee.

Warmly,

Mary Ellen McGonagle

MEM Investment Research

You Might Also Like
  • Unlocking Russell 2000 SECRETS & Volatility INSIGHTS!
  • Jobs In the Spotlight: Stock Market Reverses Course After Massive Selloff
  • A Quick Scan Tool for a Quick Swing Trade
  • META, AMZN and MSFT On The Move! Here’s How to Pinpoint Entry
Share
0
FacebookTwitterPinterestWhatsapp

previous post
MEM TV: Here’s How to Trade Explosive Stocks After Earnings
next post
What Are Covered Calls And How Do They Work?

You may also like

The Halftime Show: Energy Sector Continues Uptrend

September 8, 2023

How to Spot a Golden Mining Opportunity Using SCTR Reports

September 6, 2024

Trading the Swing within the Pattern: IGV Example

October 10, 2023

DP Trading Room: Shake Up at Boeing (BA)

March 25, 2024

Deja Dot.com Disaster?

June 20, 2024

Block and Loaded: Targeting Gains in SQ

January 3, 2025

Technology Sector Participation Is Fading

June 6, 2024

The Wisdom of Waiting for Your Pitch

August 3, 2023

Recap and Action Plan: Small Caps, Beans, Oil

November 18, 2023

Stealth AI Stocks Are Taking Off in a Flat Market

October 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    This MUST SEE MACD Pattern is...

    May 29, 2024

    2022 Q4 Earnings Results: Market Becomes...

    April 3, 2023

    AMD’s Sensational Halt — What You...

    February 23, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here