The stock market is near record highs, with tech stocks leading the way. However, experts warn that the rally could be nearing its end, and investors should be cautious about taking profits in extended stocks.
Key earnings reports are on the horizon, including those from Toll Brothers, Broadcom, Oracle, Costco, Ollie’s Bargain Outlet, and Adobe. Additionally, Nvidia chipmaker Taiwan Semiconductor will report monthly sales.
Nvidia stock rose 3% last week, rebounding from the 50-day line to reclaim the 140.76 buy point. Apple stock climbed 2.3% to 242.84 for the week, moving above a 237.49 buy point from a flat base next to another consolidation. Meta stock jumped 8.6% to 623.77 clearing a 602.95 flat-base buy point.
However, some experts warn that an extended Nasdaq could raise risks of new buys. If the composite pulls back, new breakouts or buying opportunities could fizzle. Meanwhile, many extremely extended hot stocks could suffer sharp losses.
Investors should consider cutting positions to take a new one or add to existing holdings. The market is acting well, with tech and growth plays leading the way, but investors should be cautious about taking profits in extended stocks.
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nasdaq-nears-20000-nvidia-apple-meta-microsoft