The rapid drop in American stocks in the last three weeks has been marked by dramatic falls for the biggest names on Wall Street, such as Nvidia chips and car manufacturer Tesla.
But below the surface, there was a winner, as well as losers, while investors go into stocks that are considered better isolated than economic worries and a crater assessment.
Great technology and large banks affect
Separate losers from the record maximum S&P 500 19 February. Technology shares and other high -growth companies whose estimates have increased in recent years.
Chip manufacturer NvidiaThe focus of AI shares, reduced more than 20 percent, as investors continue to worry about the threat of Chinese AI sector, while Tesla, whose shares rose after the victory of Donald Trump’s election by 36 percent because he handed over all these gains.
Peter Thiela Palantir’s data analysis company fell by 30 percent after it reached record Last month while investors hoped to reduce the cost of the US government.
Of the “magnificent seven” large technological companies, Microsoft missed the best sale, losing 8 percent.
“The shares that feel the most are those that have increased the most in recent years,” said Drew Pettit, a Citigroup capital strategist. He insisted that there is still a “pretty good background for corporate growth” and said that investors now “need to buy a little of everything beyond Mag 7”.
Otherwise, the worst contractors are supplies seen as the most exposed to slowing down the American economy, as concerns increase consumer and business feelings. Aviation stocks knocked lower demand warningsWith Delta Air Lines, American Airlines and United Airlines are reduced by almost 30 percent of S&P in February.
Banks, another sector sensitive to growing fears of recession, have also suffered. Citigroup, Morgan Stanley and Goldman Sachs are all reduced about 20 percent.
Winners: Defensive and ‘neglected shares’
Investors switched their focus to so -called defense supplies, in sectors that are usually isolated from the ups of the economy.
Among the largest winners from S&P’s February are utilities such as US water works, about 12 percent, and health care supplies like Merck & Co are increased by 11 percent.
The main homemade steel manufacturers avoided steep downs, with stocks like American steel And Nucor stood up on Tuesday as Trump threatened 50 percent of tariffs on Canadian imports. The shares surpassed the wider index than its peak in February.
In the technological sector, a sale has made a relative return to some not -loved supplies outside the magnificent seven.
Shep Perkins, Chief of Investment Director at Putnam Investments Fund Manager, quoted Cisco and IBM – Both for about 6 percent of February top and positive for the year – as examples of “neglected stocks”.
The shares that “did not have a story that really attracted to the investors of growth or investors’ prices” had their time to shine, he added.
In the note on Tuesday, Goldman Sachs invited investors to go into stock of “insensitive” at risk of economic growth, trade policy and AiBased on the share of recent refunds that calculates as if it comes from these trends – its choice includes an assessment of S&P Global and US Groam Croger agency.
Departure from technology left the US market slightly less than top -notch than it was at its peak. The S&P 500 has been reduced by more than 9 percent of the final closure last month, but the version of the index that runs each section is equally reduced by 6 percent. Technologically heavy Nasdaq Composite lost 13 percent.
Optimism with a small cap
However, there was no return to smaller US shares, confusing expectations that will probably benefit from the technological sex.
Small eyelids were withdrawn with concern about the health of the domestic economy, in a sharp turnaround from all time affected after the election, as investors bet that a new package of tax reduction and deregulation would increase growth.
The pain for small caps is contrary to their strong performance during the last August technical sale, when they gathered in a long -awaited rotation on the market. Their inefficiency this year emphasizes the growing economic fear that encourages a recent sale.
The premium for Europe is reduced
The years of stock of American shares saw them open up a big gap with peers in Europe and other markets, which some investors cited as evidence of the OA Bubble Brewing on Wall Street.
American “intimidation growth” caused this premium to reduce. Recent falls on Wall Street have taken over multiple S&P prices with a multiple-thethical measure of the relative value of shares-more than 26 to 21 times, according to Bloomberg, while they have taken them over 15 times to about 14 times forward.
Equity bulls indicate longer time frames, through which technological supplies have recovered from each downtime to record high. Tom Stevenson, director of investment in Fidelity, said “it is worth remembering that volatility is not equal to risk.”
“The risk is permanently loss of capital, which only happens if you lose your nerves and sell during the fall, not if you hang out and wait for what always happened on time – the price recovery.”
