US Stocks Extend Year-End Rally, Nasdaq Flirts With Record Highs, Oil Rebounds: What's Driving Markets Monday?
Portfolio Pulse from Piero Cingari
US stocks continued their year-end rally with the Nasdaq nearing record highs and the S&P 500, Dow Jones, and small caps also seeing gains. Despite Federal Reserve officials cautioning against market expectations for rate cuts in 2024, investors remain optimistic. Treasury yields rose slightly, negatively impacting the iShares 20+ Year Treasury Bond ETF (TLT). Oil prices increased following attacks in the Red Sea. Sector-wise, Communication Services (XLC) led gains, while Real Estate (XLRE) and Utilities (XLU) lagged. U.S. Steel Corp. (X) soared on acquisition news, Meta Platforms (META) and Alphabet (GOOGL, GOOG) rallied, V.F. Corporation (VF) dropped after a cyberattack, and SolarEdge Technologies (SEDG) declined on a Goldman Sachs downgrade.
December 18, 2023 | 6:14 pm
News sentiment analysis
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NEGATIVE IMPACT
SolarEdge Technologies Inc. (SEDG) declined 3.5% after a downgrade from Goldman Sachs.
Analyst downgrades can lead to negative investor sentiment and a short-term decline in stock price, as seen with SolarEdge Technologies.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 85
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.9% as Treasury yields rose to 3.96%.
Rising Treasury yields typically lead to falling prices for existing bonds, which would negatively impact bond ETFs like TLT in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
V.F. Corporation (VF) shares fell over 7% due to the impact of a cyberattack on its order fulfillment capabilities.
The cyberattack's impact on V.F. Corporation's ability to fulfill orders is likely to have a negative short-term effect on its stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Alphabet Inc. (GOOGL) gained 3.4%, reflecting positive market sentiment.
Alphabet's stock is expected to benefit in the short term from the overall positive sentiment in the tech industry.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Meta Platforms Inc. (META) rose 3.4%, reaching new all-time highs.
Meta's stock price is likely to continue its short-term upward trajectory, supported by the bullish sentiment in the tech sector.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) rose 0.3% as the Nasdaq 100 nears its November 2021 record highs.
The QQQ ETF, which tracks the Nasdaq 100, is likely to see continued short-term gains as the index approaches record highs, reflecting investor optimism in the tech sector.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Shares of U.S. Steel Corp. (X) surged 27% following the announcement of its acquisition by Nippon Steel.
The acquisition announcement typically leads to a significant short-term price increase for the company being acquired, as seen with U.S. Steel Corp.'s 27% surge.
CONFIDENCE 95
IMPORTANCE 95
RELEVANCE 100