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New York Stock Exchange (NYSE) senior market strategist Michael Reinking joins Morning Brief anchors Seana Smith and Brad Smith to discuss his current market outlook as the S&P 500 (^GSPC) continues its streak of 36 trading sessions without consecutive drops of 1%.
Reinking observes that despite the S&P 500 achieving "marginal new all-time highs" in recent weeks, "you continued to see the small and mid-cap indices trading pretty poorly." He points out that defensive sectors, like consumer staples, have outperformed, indicating a "flight to safety" among investors.
According to Reinking, the market is currently navigating two main challenges: a "growth scare" and "negative earnings revisions." While acknowledging solid quarterly earnings results so far, he notes that full-year earnings estimates "are down about $10."
Reinking suggests that upcoming Nvidia (NVDA) earnings could potentially reinvigorate the S&P 500 and renew interest in Big Tech stocks. However, he cautions, "For that broadening story to happen, we're going to need to work through some of the other issues."
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This post was written by Angel Smith