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U.S. equity markets climbed higher this week, led once again by large-cap technology and communication services stocks, as investors rotated into growth amid a stable macro backdrop.

In the below table we use major ETF's as a proxy for some major indexes as well as each of the sector groups that we divide the market into. Tracking these over time provides a more defined picture of the US markets than simply tracking major indexes.

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Current ValuEngine reports on all covered stocks and ETFs can be viewed at here.

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Closing Statement:  

The military phrase, “As you were,” seems perfect to describe the US equity market this week in the wake of the cease-fire. With no major new disturbances to the general status quo, the market went into what has been general default mode, a large cap rally reminiscent of an old movie title, “The Magnificent Seven Ride!”

Our predictive model concurs. Six of the eight largest holdings of the Nasdaq-100 ETF (QQQM) are rated 4 (Buy). This includes: Nvidia (NVDA); Broadcom (AVGO); Amazon (AMZN); Meta Holdings (META); Netflix (NFLX); and Tesla (TSLA). Among the top 8 (traditional magnificent 7 plus Broadcom), only Apple (AAPL) and Microsoft (MSFT) are rated 3 (Hold). To top things off, QQQM is also rated 4 (Buy).

As usual, this rally can be expected to last until it doesn’t. The view from here is that absent of major external events, the majority of cash flows into the US stock market want to continue to buy the largest of the large cap technology stocks.

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