Inside the Rotation Out of Tech Stocks
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In this week's newsletter:
With the August jobs report in the rearview mirror, there seems to be little standing in the way of the Federal Reserve cutting interest rates this month, The only question is by how much.
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Some in the markets took the jobs data as evidence that the Fed will slice the federal-funds rate by half a percentage point, which would be an aggressive move by historical standards. We checked in with Morningstar chief US economist Preston Caldwell on what he made of the jobs report and what he thinks the Fed will announce on Sept. 18.
Meanwhile, the stock market has been looking decidedly soggy of late. Much of the red has been in the stocks that had led the rally, aka big technology and growth names. Bella Albrecht and Gabe Alpert took a look under the hood at the rotation to see where investors are putting their money.
Perhaps the most high-profile swing has been in Nvidia. Even as the company continues to ride the artificial intelligence wave, some investors apparently think it’s not booming enough, and the stock is down 15% since reporting earnings. After this steep decline, is Nvidia a buy? Here’s what Morningstar’s Brian Colello has to say.
What’s next for stocks? Morningstar chief US market strategist Dave Sekera offers his view of the market and where investors might want to tilt their portfolios. ?
This week, we also have our monthly market recaps. You can check out our screen for the best-performing dividend stocks, the month’s best and worst stocks, how the most widely held ETFs did last month, and the best- and worst-performing ETFs. We also have our monthly screen for cheap stocks that just raised dividends, along with a list of the stocks in Morningstar’s coverage list that announced big dividend increased in August.
Lastly, Gabe Alpert spoke with Bill Nygren, manager of the top-performing Oakmark Fund. The famed value manager offers up five stock picks from his portfolio.
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