Latest news with #pullback
Yahoo
10 hours ago
- Business
- Yahoo
Stock Market Correction Warning: Did Tech Sector Divergence Just Throw Up a Red Flag for Investors?
The U.S. stock market is still sitting near all-time highs… but beneath the surface, some cracks may be forming. In a recent Market on Close discussion, hosts John Rowland and 'Twitter Tom' debated whether we're on the verge of a pullback, or if the rally still has legs. Here's what they're seeing in the data: More News from Barchart Options Traders Price in Volatile Nvidia Earnings Reaction After U.S. Government Deal on AI Chips Shopify's Higher FCF Margins Can Push SHOP Stock Higher Option Volatility And Earnings Report For Aug 11 - 15 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. 1. Sector Momentum is Flashing Divergence The S&P 500 Tech Sector ETF (XLK) Relative Strength Index (RSI) is above 60, signaling strong momentum. On the other hand, the S&P 500 Equal Weight ETF (RSP) RSI is moving lower, beneath 50, suggesting broader market participation is more subdued. Historically, this setup has appeared six times since 2006. In five of those cases, the market saw a 10% or greater correction shortly after. 2. A Contrarian Take Tom sees the widespread expectation of an August pullback as a reason to be cautious about betting against the market. If 'everyone' is bracing for a drop, markets sometimes do the opposite. John, however, leans on the historical data — which currently tilts toward a downside move — and says this divergence between tech leadership and equal-weight performance shouldn't be ignored. 3. Options Traders Are Getting Bearish The put/call ratio on the SPY ETF is climbing, meaning more traders are buying puts (bearish bets) than calls. For this week's monthly August options expiration, the SPDR S&P 500 ETF (SPY) put/call ratio is above 4.0 — meaning there are four times as many puts in open interest as calls. That's a rare level of bearish positioning and can sometimes precede sharp moves. What's at Stake? Some analysts point to valuation extremes that now surpass the late-90s tech boom. Others note macro risks — tariffs, stagflation concerns, and global uncertainty — that could act as catalysts for a correction. But for now, the market is balancing two narratives: The Bear Case: Overbought tech, narrowing breadth, and rising bearish options positioning could trigger a correction. The Bull Case: Strong large-cap leadership, resilient earnings, and contrarian sentiment might keep the rally alive. Watch the reel to see John and Tom argue their cases: Then, check out the full episode of Market on Close to see what they're watching next. On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
There is a Chance of a Market Pullback: Stifel CEO
Stifel Chairman and CEO Ron Kruszewski says while the market is priced "sort of" to perfection, he believes there is a chance of a pullback and that it would be healthy. He speaks with Scarlet Fu on "Bloomberg Markets."
Bloomberg
30-07-2025
- Business
- Bloomberg
There is a Chance of a Market Pullback: Stifel CEO
Stifel Chairman and CEO Ron Kruszewski says while the market is priced 'sort of' to perfection, he believes there is a chance of a pullback and that it would be healthy. He speaks with Scarlet Fu on 'Bloomberg Markets.' (Source: Bloomberg)
Yahoo
21-07-2025
- Business
- Yahoo
Warning Lights Flash as Sell Signals Grow
Investors are growing wary as HSBC's sentiment gauges shift into sell territory, hinting at a possible market pullback later this year. You might've felt the post?Liberation Day rally lacked real conviction. Even though stocks and high?yield credit climbed, long?only funds quietly trimmed the same time CTA programs pulled back on equities and bond positions, while nudging up bets on the US dollar. Yet equity momentum remains stretched to the upside. When everyone's leaning in one direction, sentiment signals often flip before prices do. Add looming August tariff deadlines and margin worries in Q2 results, and you've got the ingredients for a summer wobble. We could still inch higher as tariff concerns fade, but any fresh trade barriers or extreme positioning could spark a sharp, short?term dip. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-07-2025
- Automotive
- Yahoo
Why Tesla Stock Plummeted 21.3% in the First Half of 2025 -- and What Comes Next
Key Points After rallying last year, Tesla stock has seen a big pullback in 2025. Declining vehicle deliveries and political headwinds have pressured the company's valuation. Tesla's electric vehicle business is facing significant challenges, but some investors are betting that robotaxis and other growth drivers will reinvigorate the business. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) stock saw a substantial pullback across this year's first half. The company's share price fell 21.3% across the first six months of 2025, according to data from S&P Global Market Intelligence. The sell-off came even as the S&P 500 index climbed 5.5% over the stretch. Tesla stock surged in the latter half of 2024 in anticipation of political tailwinds connected to the presidential election and President Trump's victory in the race, but the gains set the stage for a significant pullback this year, as political dynamics shifted and vehicle sales came in at underwhelming levels. Tesla stock sank due to vehicle deliveries and political headwinds Tesla kicked off January with its deliveries update for last year's fourth quarter and announced that it had delivered 495,570 vehicles in the period. While the performance marked an increase from the 484,507 vehicles it delivered in the prior-year quarter, 2024 still wound up being the first year in which the company's total deliveries decreased. The company then published its Q1 performance update in April and reported that it had delivered 336,681 vehicles in the period -- down 13% year over year. Vehicle sales this year have looked particularly weak in European markets, and it seems that CEO Elon Musk's activities in the political realm may have had a significant negative impact on the company's brand. Factors including rising competition from Chinese manufacturers also played a role in Tesla's sell-offs across this year's first half. The company did launch its robotaxi service in Austin, Texas toward the end of June, but the service's launch hasn't been able to support a sustained rally for the stock yet. What's next for Tesla? At the beginning of this month, Tesla published vehicle production and delivery updates for the second quarter. The business delivered approximately 384,122 vehicles in the period, representing a year-over-year decline of roughly 14%. Meanwhile, the business produced 410,244 vehicles in the period -- down slightly from the roughly 411,000 vehicles produced in Q2 of the previous year. Even though the company saw substantial declines for deliveries in the quarter, the results were better than some analysts had feared and actually helped support gains for the stock. The company's share price has also seen significant moves in relation to developments surrounding Elon Musk's relationship with President Trump, and there's a good chance that political catalysts will continue to spur moves for the stock in the near term. Tesla stock has seen some significant swings in July, and its share price is now up roughly 1.3% across this month's trading as of this writing. As of this writing, Tesla has a market capitalization of roughly $1.04 trillion and is valued at approximately 10.8 times this year's expected sales. Given recent declines for vehicle deliveries, the company's current valuation comes with a high amount of risk. On the other hand, investors are betting that Tesla's robotaxi project and other growth bets will pave the way for the business to score huge wins outside of its core electric vehicle market. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $442,699!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $39,697!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $679,653!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 14, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Why Tesla Stock Plummeted 21.3% in the First Half of 2025 -- and What Comes Next was originally published by The Motley Fool Sign in to access your portfolio
