Tech Sell-Off Triggers Market Reset: Value Stocks Reach 7-Month High Versus Growth
Portfolio Pulse from Piero Cingari
The U.S. stock market saw a significant sell-off in technology stocks, leading to the worst start of the year in decades. The S&P 500 and Nasdaq 100 fell 0.6% and 1.7%, respectively. Value stocks, however, performed well, with the iShares Core S&P U.S. Value ETF (IUSV) reaching a 7-month high. Moderna, Viatris, Travel Leisure, Las Vegas Sands, and Marriott Vacations were top gainers among value stocks. Key contributors to IUSV's performance included Berkshire Hathaway, Exxon Mobil, Johnson & Johnson, UnitedHealth Group, and Merck & Co. JPMorgan Chase, Intel, Bank of America, Wells Fargo, and Verizon Communications were top contributors to value performance over the last month.
January 03, 2024 | 3:26 pm
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NEGATIVE IMPACT
iShares Core S&P U.S. Growth ETF (IUSG) fell by 1.6%, underperforming amidst a broader tech sector sell-off.
The decline in IUSG's performance is in line with the sell-off in growth stocks, particularly in the tech sector, which may continue to impact it in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
iShares Core S&P U.S. Value ETF (IUSV) closed 0.6% higher, reaching new all-time highs, indicating a shift in investor preference towards value stocks.
The positive performance of IUSV amidst a broader market sell-off suggests a strong investor interest in value stocks, which could lead to continued short-term gains.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Las Vegas Sands Corp (LVS) closed 4.31% higher, in line with the positive trend for value stocks.
LVS's performance reflects the current investor preference for value stocks, which could continue to benefit the stock in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Moderna, Inc. (MRNA) was a top gainer among value stocks, with a significant increase of 13.12% on Jan. 2.
Moderna's substantial gain indicates strong market favorability, which could persist in the short term as investors look for value stocks.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Travel Leisure Co. (TNL) experienced a 4.35% gain, benefiting from the shift towards value stocks.
TNL's gain is indicative of the current market trend favoring value stocks, which may lead to further short-term appreciation.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Marriott Vacations Worldwide Corporation (VAC) gained 4.26%, showing strength in the value stock segment.
VAC's gain is consistent with the broader market's pivot towards value stocks, suggesting potential for continued short-term growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Viatris Inc. (VTRS) saw a notable increase of 5.17%, aligning with the trend of value stocks outperforming growth stocks.
VTRS's performance is part of the broader trend of value stocks gaining favor, which may result in continued short-term positive momentum.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70