(Bloomberg) -- The stock market has recovered most of the losses suffered in its summer selloff. While the S&P 500 Index has bounced back before, this time...
-- The stock market has recovered most of the losses suffered in its summer selloff. While the S&P 500 Index has bounced back before, this time is unique because it isn’t being led by Big Tech — instead it’s everyone else’s turn.The Hague Is World’s First City to Ban Oil and Air Travel Ads
“We don’t believe we’re going into a recession, and the stocks that will begin to show leadership are the cyclicals that will benefit from higher economic growth and lower interest rates,” said Adam Grossman, chief investment officer for global equities at Riverfront Investment Group, who added that large cap tech stocks remain his firm’s biggest overweight position.
Another factor helping sectors outside of tech is improving earnings outlooks. Take health care as an example: After seven consecutive quarters of shrinking profits, earnings from health-care companies rose 16% in the second quarter, according to data compiled by Bloomberg Intelligence. That expansion is expected to continue through the remainder of the year, with profit growth projected to hit 45% in the first quarter of 2025.Of course, earnings from tech behemoths remain strong.
A big beneficiary of all that cash flying around is Nvidia, whose semiconductors have become prized for the types of computing required for AI models. But more broadly, it also has raised concerns among investors about profit margins at the chipmaker’s biggest customers — particularly with few signs so far that the spending is translating into the kind of revenue growth required to financially justify the outlays.
“The other 493, being a lot cheaper, probably do get a bit of a bid, but it doesn’t mean you throw the baby out with the bath water,” he said. “These companies are printing money hand over fist. That’s a big difference from 2000.”China Can Avoid Japan’s Lost Decades If It Follows Korea’s PathAlcoa Announces Agreement to Sell its 25.1% Stake in Ma’aden Joint Venture to Ma’aden
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