Tech Is Leading Again. Here's What Investors Should Watch Next
The weaker-than-expected jobs report eased concerns of an interest rate hike in the next FOMC meeting. Growth stocks reacted positively to the news. At one point, the Nasdaq Composite ($COMPQ) hit a new high but pulled back while the Nasdaq 100 ($NDX) notched a record close. So, overall, it looks like the stock market wants to move higher, but the leadership is concentrated.
This week’s update:
- Treasury yields pull back
- Technology continues to lead
- Sharper charts and more
Treasury yields ease
A softer inflation report and weaker-than-expected jobs report gave the bond market a boost. It also lowered expectations for an interest rate hike at the next Federal Reserve meeting. Treasury yields came off their highs, but ended up closing higher. The change in rate expectations is beginning to show up in interest rate-sensitive areas of the market. Banks, homebuilders, and real estate are starting to show upside movement, but it's still early.
The next few weeks should give us a better idea of whether yields have peaked. For now, though, technology stocks are in the driver’s seat.
Mag 7 push higher
The Magnificent Seven stocks posted strong gains on Friday. A quick look at the MarketCarpet shows big moves from NVIDIA (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Tesla (TSLA). Meta (META) also finished higher but with the smallest gain of the group.
The strength is helping to move the major indexes higher, but the broader market isn’t keeping up the same pace. Look at the percentage of S&P 500 stocks trading above their 200-day moving average. It’s at 45.40%, which tells us that fewer than half of the S&P 500 stocks are participating in the uptrend.
SharpCharts just got sharper
Last week, we gave SharpCharts a facelift, and sometimes a small change can make a big difference. They're the same charts, but they look sharper. The lines are cleaner, annotations are crisper, and the charting experience feels more polished. So, switch on the high-def chart settings and take these charts for a spin.
This is just one of the improvements we’ve been working on to improve your chart experience.
If you're not currently a StockCharts member or you’ve been thinking of reactivating your subscription, now is a great time to join. For a limited time, we're offering two free months of StockCharts. The offer ends on October 11, 2026.
👉Start Today and Get Two Months Free
Have a wonderful weekend!
