Don’t rush to a recession store – Wall Street professionals see the opportunity in technology and banks
Concerns of estimates, tariffs and slowdown in economic growth launched an ugly week for shares.
Sleep in the magnificent seven stores pushed the Nasdaq composite (^Ixix) in the territory of corrections. The index closed the week lower by 3.6%, while S&P 500 (^GSPC) recorded his worst weekly appearance since September.
Near: March 7 at 16:43:27 pm
^GSPC ^Ixix
But before the investors abolished it, strategists told me it was not time to panic and put into a recession store. Instead, recent sales are seen as an opportunity to buy, as long as investors are ready to look at past uncertainty from Washington, DC
“We are correcting the correction once every 12 months, and this time it has encouraged tariffs,” Nancy Tengler of Terngler Investments told me. “If they are short -lived, then this is just an opportunity to buy supplies in the long run.”
According to Tengler, technology and finances are among the two crafts that stand out.
“Defense store is just that, a shop,” she noticed. “We love financial services … and cases of use for AI explodes. This is an industrial revolution as we haven’t seen 100 years … use weakness to add to your share.”
The corrections of evaluation paired with strong earnings make a group more convincing. Losses of market caps from Nvidia (Nvda) A record high in January reached $ 1 billion dollars during a trade on Friday. Recently announced chips giant The earnings of the fourth quarter This included 82% earnings per share.
Near: March 7 at 4:00 pm
Nvda Tsla
“Tarife adds uncertainty, but that doesn’t change the demand cycle,” Wedbush told me on my day on the morning short short Yahoo Finance. “This will not end the technological bull market; it is fear, but I see more opportunities for the reason to head for the hills.”
Ives reiterated his view that the Mag of seven shares of Nvidia, Microsoft (Msft), Alphabet (Googl,, Goog), Amazon (AMZN), and Tesla (Tsla) Stay the companies they own, along with Palants (Plrr) and Salesforce (CRM), claiming “any weakness is an opportunity to buy with respect to the basic image of demand.”
Another weaker sector that attracts attention this week is the fundals. KBW Nasdaq Bank Index (^Bkx) deleted his post-exhibit gathering, fell almost 13% of the recent top as an concern about the weakening of the economy and a slow agreement that weighed in the sector.
However, strategists claim that outside the care of the title, key catalysts for the sector remain intact: deregulation, attractive assessments and prospects for lower interest rates.
Near: March 7 at 5:15:59 PM EST
Truist’s Keith Lerner, who recently reduced shares from attractive to neutral, maintains his “attractive” chance of financial services (XLF). In a note to clients, Lerner wrote a group “should benefit from growth policies, deregulation and takeover of merging and acquisitions.”
