Technological stocks continue in the short circle.
NASDAQ 100 (^NDX) ended less than 200 days moving average last week for the first time in nearly two years, according to Charlie Pellelo data, a strategic expert in creative planning markets. The 200 -day moving average is a technical measure of long -term feelings on an index or stock.
It was distinguished by the end of the second coach in the history of Nasdaq 100 in 497 days. During this extension, NASDAQ achieved 100 revenues by 73 %.
NASDAQ 100 contains the largest companies that are active in the NASDAQ Stock Exchange. It includes some of the largest momentum in technology, such as Palantir (PLTR), NVIDIA (NVDA), Amazon (Amzn), Alphabet (Googy), Intel (INTC), Microsoft (MSFT), Tesla (TSLA), and Apple (AAPL).
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It also includes consumers such as Starbucks (SBux) and Costco (cost).
Pelelo’s work shows the tallest race in NASDAQ 100 over the 200 -day moving average, 572 days from July 6, 2016 to October 10, 2018. The return of this period was 58 %.
The broader NASDAQ compound entered the correction area last week, which was defined as a 10 % decrease or more than the highest modern level. The index closed the week by 3.6 %, while the S&P 500 (^Gspc) recorded the worst weekly performance since September.
“We get one time every 12 months, and this time, driven by definitions,” Nancy Tengler of Tengler Investments told Yahoo Finance Seana Smith.
The market passes an approximate correction in the month of March, where investors digest a set of major addresses related to tariffs.
Experts say that the customs tariff for China, Mexico and Canada from the Trump administration may harm the profits of companies this year. In exchange for such a background, investors sell high -value technology shares and are in more defensive names in health care or companies that pay strong profits.
Read more: What does Trump’s tariff mean for the economy and your wallet?
For some previous technology names, sales have become very clear.
Amazon, alphabet, Microsoft, NVIDIA, and Tesla are all 10 % or more than their highest levels for 52 weeks.
The losses of the maximum NVIDIA market from the height of the record in January amounted to $ 1 trillion. The losses accelerated in the wake of the fourth quarter profit report, which the investors only considered.
“We believe that their investors are very benign in the interpretation of possible new policies and their impact on US profits,” said Adam Parker, the founder of research in Trevarete.
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