Via a note from Barclays, in short. Analysts are worried about the “bulge” stocks that inflate the index, which intensified after the banking crisis.
- “Huge cap outperformance is not unusual in historical instances of mounting stress, so large tech multipliers could see near-term support at current levels even after leading the market throughout the recent journey to safety.”
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“We would caution against an excessively bullish interpretation (eg rest of the market is cheap) as equities are still exposed to earnings risk and we see little bullish catalyst, leaving risk/reward skewed disproportionately to the downside,
A possible bullish signal is being recognized though:
- “The huge potential of AI also provides medium-term support, but it is too early to assess the full impact.”
previously:
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Globex is open with the net benchmark now slightly changed:
(This chart is from our charting app, which is free and It can be found at this link)