Market breadth is a ‘prove-it story’: NYSE strategist

Mega-cap Big Tech names are outperforming in markets again, but can they keep the same momentum they once had? NYSE Senior Market Strategist Michael Reinking joins Morning Brief to discuss his outlook on breadth within the stock market. Reinking notes that the market (^DJI, ^IXIC, ^GSPC) expanded in breadth post-election, with mega-cap tech stocks beginning to recover. “We’re at kind of an area where you’d like to see that breadth expansion start to… pick back up,” he says, highlighting concerns about higher inflation and the potential for fewer rate cuts in 2025. He identifies financials and industrials as sectors positioned to benefit from increased market breadth expansion. Regarding a catalyst for market breadth, Reinking characterizes it as “a prove it story,” noting the earnings gap between the Magnificent 7 and the other equal-weighted stocks in the S&P 500 (^GSPC) is likely to narrow. “It’s going to be a situation where you need to see companies, A) being able to meet their earnings expectations, but you want to see the earnings revisions start to move more positively for that equal weight… contingent,” he explains.
#news #youtube #stocks

About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

– Get the latest news and data at finance.yahoo.com

– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)

– Follow Yahoo Finance on social:

X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance

source