Bloomberg: Stock Futures Remain Lower After PCE Inflation Report

October 30, 2024

Wall Street remained uncertain after Thursday’s selloff, with mixed earnings from key tech players leaving traders without clear market direction. Major indexes struggled, as gains from the beginning of October were erased; the S&P 500 fell 1.9%, and the Nasdaq 100 dropped 2.4%, reflecting concerns that recent growth in large tech stocks might have been excessive.

Anticipated volatility lies ahead, with the U.S. election, Federal Reserve meeting, and jobs report on the horizon. The dollar marked its best month since 2022, while Treasuries posted their steepest monthly loss in two years. Oil prices surged amid geopolitical concerns, and gold saw some profit-taking after a recent rally.

Michael Landsberg, Chief Investment Officer of Landsberg Bennett Private Wealth Management, noted the importance of maintaining diversification within the tech sector, suggesting a balanced focus on areas beyond prominent AI-driven gains, including fields like cybersecurity, robotics, automation, and smart infrastructure.

He commented, “It makes some sense to trim some from those names that have worked so well over the past 12-18 months and look for AI laggards as well as other tech themes like cybersecurity, robotics and automation, and smart homes and cities.”

Key Takeaways:

  1. Market Uncertainty and Mixed Earnings: The recent selloff and varied tech earnings reports contributed to a lack of clear direction in major indexes.
  2. Expected Volatility: With significant events approaching, including the U.S. election, a Fed meeting, and a jobs report, market volatility is anticipated to continue.
  3. Dollar and Treasury Movements: The dollar saw its strongest monthly gain since 2022, while Treasuries recorded their biggest loss in two years.
  4. Commodities Affected by Geopolitical Tensions: Oil prices rose due to geopolitical developments, while gold saw some profit-taking.
  5. Balanced Approach to Tech Investments: Michael Landsberg highlighted the importance of maintaining a diversified focus within the tech sector, pointing to potential in sectors beyond dominant AI-driven growth.
  6. November’s Historical Market Trends: November has historically been one of the strongest months for the Dow, with a positive average gain over recent decades, providing a seasonal backdrop amid upcoming market-moving events.

As markets remain sensitive to mixed earnings, geopolitical concerns, and upcoming economic events, investors may benefit from staying attuned to evolving trends within sectors and market sentiment.

Michael Landsberg’s emphasis on a diversified approach within tech highlights the importance of balanced exposure amid volatility, especially as key events unfold in November—a month that historically provides a favorable seasonal trend.

Learn more here: https://www.bloomberg.com/news/articles/2024-10-30/stock-market-today-dow-s-p-live-updates?srnd=homepage-americas

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