Deutsche Bank predicts that the recent shift away from Big Tech and into small caps is not just a temporary trend but has the potential to continue in the medium term. According to strategist Parag Thatte, the market is currently over-optimistic about the growth areas that have been driving the bull rally, leading to a rotation in positioning and flows away from megacap growth and tech sectors.
Meanwhile, IQVIA shares surged over 5% following the company’s second-quarter earnings report, which exceeded Wall Street’s expectations. The health tech company posted earnings of $2.64 per share on revenue of $3.81 billion, outperforming analysts’ estimates. The stock has seen a nearly 10% increase in the past month.
On the other hand, CrowdStrike experienced the biggest loss in the S&P 500 as a result of a global IT outage caused by a recent software update. The cybersecurity stock dropped nearly 11% in morning trading, making it the worst performer in the index. This decline follows a slide of over 11% on Friday amid the outage.
In premarket trading, stocks like CrowdStrike, Nvidia, and Bank of America made significant moves. CrowdStrike dropped 4% after a downgrade from Guggenheim, while Nvidia gained 2% on reports of new AI chips for the Chinese market. Bank of America saw a more than 1% dip after Berkshire Hathaway sold $1.48 billion worth of its shares last week.
Overall, the market opened higher on Monday, with the Dow Jones Industrial Average gaining 125 points, the S&P 500 rising 0.65%, and the Nasdaq Composite jumping 1%. Nvidia shares also climbed in the premarket, following reports of new AI chips for the Chinese market and positive analyst outlooks.
Gold futures rose on Sunday after a decline on Friday, with U.S. gold futures advancing 0.5% to $2,411.10. Spot gold also gained 0.4% to $2,409.37, while the U.S. dollar index slipped 0.1%.
In addition, stock futures inched higher on Sunday night, with futures tied to the S&P 500 rising 0.1%, and Dow Jones Industrial Average and Nasdaq 100 futures adding around 0.1% each.
