Good Morning,
I hope everyone had a great weekend. It was nice to get out and enjoy the weather we had on Saturday!
There has been an AI momentum unwind in the markets of late as investors question if the level of AI spend by corporations is justified. In my mind, the biggest catalyst this week will be the Nvidia Q3 earnings report set to release Wednesday after market close. I have been more value focused this year but NVDA results will likely influence market momentum as a whole. This Thursday we finally get the September nonfarm payrolls report which will shed additional light on rates going forward. Odds of a December cut have continued to decline which I think is also being unwound from equity prices. Earnings this season have largely outperformed ahead of the critical holiday shopping season. I think the set-up is one where we will continue to see this market broaden out into more value pockets of the market. Why? Excess froth in big cap tech names, lower rates making cash less attractive (~$7 trillion in cash on sidelines), continued earnings growth, and year-end rebalancing. Time will tell and in the meantime, please continue to reach out with additional questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!