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A market with more swings than clarity

End of tech euphoria? The Dow Jones tops 50k while software cools down. We analyze a mixed week and the macro data that will define the path for your investments.

A market with more swings than clarity

During the week, the New York Stock Exchange showed mixed and contrasting behavior: some indexes rebounded strongly, while others faced significant pressure, particularly from the technology sector. There were moments of optimism, but also signs of uncertainty and introspection among investors.

General Trends

Balances and divergences:

  • The Dow Jones surpassed the 50,000-point mark for the first time after a strong recovery toward the end of the week.

  • The S&P 500 closed the week largely flat, reflecting the absence of a sustained directional bias.

  • The Nasdaq faced a more challenging week, pressured by technology stocks that remained under scrutiny.

This pattern suggests that while investors continue to seek returns, there is a tactical shift toward more defensive sectors and companies driven by concrete results rather than distant growth narratives.

Factors That Moved the Market

1. Pressure on technology and software Software stocks and AI-intensive companies were among the biggest decliners, posting significant losses that dragged down part of the technology sector. This points to a transition away from expectations of explosive growth toward a more measured evaluation of future margins and competitive risks.

2. Strategist reactions Goldman Sachs analysts warned that selling pressure could persist, especially if key technical levels on the S&P 500 are broken.

3. Macro expectations and upcoming data U.S. equity futures started the week pointing to a lower open, as rising Treasury yields reduced risk appetite. Investors are also closely watching employment and inflation data, which could soon redefine monetary policy expectations.

Sectors Under the Microscope

Technology and growth

  • Highly volatile. Selling pressure in software and AI-related companies led to negative sessions and heightened concerns over elevated valuations.

  • This has pushed some investors to rotate toward more defensive or economically sensitive sectors.

Cyclicals and defensives

  • Stocks tied to stable consumption and industrials showed better relative performance, supporting the stability of broader indexes such as the Dow Jones.

  • Traditional assets like precious metals and bonds also attracted attention as alternative safe havens.

The Market’s Implicit Message

  • Investors are not fleeing risk, but they are pricing it more carefully: growth without solid fundamentals is no longer being rewarded.

  • The strong rotation away from technology toward other sectors reflects greater selectivity in decision-making.

  • The market remains technical and highly sensitive to company-specific news rather than broad market narratives.

What Could Come Next

Expectations for the coming week:

  • Higher volatility if employment and inflation data surprise the upside or downside.

  • Amplified reactions to key corporate earnings reports, which may offer clues about future margins.

  • Continued sector rotation, with potential support for defensive sectors and realignment across industries.

The week leaves a market that is not moving decisively, but rather testing its footing. There is less speculative noise and more focus on fundamentals, macro conditions, and company-specific developments. For investors, this means discipline and careful analysis will remain essential to navigate this environment.

The opinions in the preceding commentary are as of the date of publication and are subject to change.  Information has been obtained from third party sources we consider reliable, but we do not guarantee the facts cited are accurate or complete.  This material is not intended to be relied upon as a forecast or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. We may execute transactions in securities that may not be consistent with the report’s conclusions.  Investors should consult their financial advisor on the strategy best for them.  Past performance is no guarantee of future results. For illustrative purposes only. Does not represent an investment recommendation. For more information, please see our Social Media Disclosure.

Securities offered by Northbound Securities, LLC Member FINRA/SIPC 

Sources: Bloomberg, Reuters Energy, CNBC Markets, ISM Manufacturing Report