Sector Performance: Leading stocks in the technology sector remained stable, while divergence increased among overvalued secondary stocks, with funds continuing to concentrate on "core assets."
Defensive/Value Sectors: Energy, Utilities, and Healthcare sectors received some capital inflows and performed relatively steadily in the volatile market.
📌 Sector rotation remains the main trading theme in the short term.
The stock market continued its high-level consolidation pattern at the end of the month. The trend remains intact, but momentum is slowing, and the market is entering a period of patience awaiting new catalysts.
Meanwhile, Tesla's stock price swung from profit to loss, falling nearly 3% as the company shifted its strategic focus from electric vehicles to robotics and reported better-than-expected quarterly earnings. However, the company also saw its first-ever annual revenue decline. Investors are currently closely watching Apple's quarterly earnings report, which will be released after the market closes.
Amid escalating tensions between the US and Iran, tech stocks are in focus. President Trump warned Iran that it must reach a nuclear agreement quickly or face military action, exacerbating tensions between the two sides. Crude oil futures prices climbed, extending gains from a four-month high reached on Tuesday, as US ships amassed in the region, and Brent crude broke through the latest resistance level of $70 per barrel. Gold prices also rose, briefly returning to a record high of $5,500 per ounce, but gains subsequently narrowed as a weaker DXY index fueled safe-haven demand.
On Thursday morning, the three major stock indexes fell sharply due to a sell-off in technology stocks, as investors expressed concerns about artificial intelligence spending following earnings reports from major tech companies.
The tech-heavy Nasdaq Composite Index led the decline, falling about 2.6%, with Microsoft shares plunging more than 10%. The S&P 500 and Dow Jones Industrial Average also followed the tech sector's decline, falling 1.5% and 0.8% respectively, extending Wednesday's weak performance.
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