Recent price action seems to illustrate how sentiment’s shifting away from the Nasdaq-100.
Futures on technology-heavy index (@NQ) hit 7225 on November 7 as U.S. equities enjoyed a relief rally after mid-term elections. That was almost 2 percent below their mid-October peak.
Futures on the more traditional Dow Jones Industrial Average (@YM), on the other hand, rose more than 1 percent above their corresponding level last month.
This diverging performance comes amid a growing sense that high-profile technology companies have lost their mojo. Meanwhile, less exciting parts of the market — consumer stocks and health care — are gaining favor. This is the shift from “growth to value” everyone’s talking about.
Market Insights has covered a lot of this, especially after weak quarterly results hammered big names like Apple (AAPL) and Amazon.com (AMZN). There’s also been a shift to “boring” names like McDonald’s (MCD). The Golden Arches, by the way, hit a new all-time high on Thursday while Facebook (FB) struggled to stay above its 52-week lows.
Trends like this can play out in many ways over time as investors look for new places to park their dollars. Keep reading Market Insights for more.