Editor Thenews24.net ### CNBC Pro’s Live Market Coverage: Thursday’s Investor Insights
**Market Rebound on Economic Stability**
On Thursday, investors regained confidence as economic indicators suggested a slower decline than previously feared. The S&P 500 surged by 2.3%, marking its best performance since 2022, while the Nasdaq Composite rose by 2.87%. The Dow Jones Industrial Average also climbed 683 points, or 1.76%. Positive news came from new jobless claims, indicating a resilient labor market. Following a disappointing July jobs report that triggered recent sell-offs, investors are now focusing on consumer trends for the rest of the year.
**3:41 p.m.: Citi Wealth Identifies New Opportunities**
Citi Wealth sees a broader market with more opportunities as the dominance of high-flying tech stocks wanes. The firm has ended its underweight position in the S&P 500 equal-weight large-cap index, suggesting that the era of market concentration in the “Magnificent Seven” tech stocks is diminishing. Steven Wieting, Citi Wealth’s chief economist and investment strategist, highlighted the potential in high-beta small- and mid-cap growth companies, healthcare, and related equipment and supplies sectors. Additionally, Citi has closed its overweight position in Treasurys, advocating for balanced portfolios to mitigate concentration risk.
**3:15 p.m.: Rate Normalization Influences Market Movements**
Gregory Faranello of AmeriVet Securities attributes recent market actions, especially in bonds, to rate normalization. He noted that the Bank of Japan’s recent rate hike to its highest level since October 2008 and the Federal Reserve’s expected 50 basis point cut in September are key factors. Faranello emphasized the slowing labor market as a significant influence on the Fed’s decisions.
**2:43 p.m.: High-Quality Bonds Recommended Amid Market Volatility**
Skyler Weinand, chief investment officer at Regan Capital, advises investors to consider high-quality bonds during stock market fluctuations. He pointed out that floating-rate bonds are likely to outperform in the next year due to the severely inverted yield curve and anticipated rate cuts from the Federal Reserve.
**1:57 p.m.: AI’s Broader Market Potential**
RJ Assaly, chief market strategist at Toggle AI, believes that the benefits of artificial intelligence can extend beyond the tech sector. He cited companies like John Deere, which utilize AI for various productivity-enhancing technologies, as examples of how AI can impact a broader range of industries.
**1 p.m.: Market Resilience Despite Volatility**
Scott Ladner, chief investment officer at Horizon Investments, argues that the recent market volatility is overblown, given the resilience of the U.S. and global economies. He expects continued volatility but believes that stocks could still end the year higher. Ladner sees opportunities in interest-rate-sensitive stocks, such as homebuilders and housing stocks, as well as tech and healthcare sectors.
**12:31 p.m.: Citi Predicts Rate Cuts Amid Economic Inflection Point**
Citi forecasts a 50 basis point rate cut by the Federal Reserve in September, followed by additional cuts in November and December, totaling a 125 basis point reduction by year-end. Rob Sockin, Citi’s senior global economist, noted that while recessionary conditions are emerging, the economy is at an inflection point, and the data will determine the extent of future rate cuts.
**12:18 p.m.: Quality Stocks in Industrials and Financials**
Quincy Krosby, chief global strategist at LPL Financial, recommends high-quality dividend stocks in the industrial and financial sectors. She advises caution due to potential further market pullbacks but remains optimistic about a strong market supported by resilient labor market data.
**11:49 a.m.: Potential Market Reversal**
Craig Johnson, chief market technician at Piper Sandler, suggests that major stock market averages could test recent lows if Thursday’s session turns negative. However, the market showed significant gains, with the Dow and S&P 500 both up over 1% and the Nasdaq up about 2%.
**10:47 a.m.: JPMorgan Warns of Continued Market Pressure**
Dubravko Lakos-Bujas, a strategist at JPMorgan, warns that market pressure may persist, especially if economic growth slows and the Fed does not act urgently. Despite recent market corrections, he expects stocks to rise in the long term, viewing the current equity rotation as an intra-cycle adjustment rather than the end of a bull market.
**10:02 a.m.: T.S. Lombard Sees Contained Correction**
Andrea Cicione of T.S. Lombard views the recent market setback as a buying opportunity for long-term investors. He expects the market to recover its losses in the coming weeks, supported by a soft-landing economic outlook. Cicione recommends investing in the equal-weight S&P 500 and high-yield corporate bonds.
**9:57 a.m.: Defensive Positions Advised**
Tiffany McGhee, CEO of Pivotal Advisors, emphasizes the importance of including defensive positions in portfolios. She recommends the Consumer Staples Select Sector SPDR Fund (XLP), which includes companies like Walmart, Procter & Gamble, and Coca-Cola, as a balanced investment strategy.
**9:07 a.m.: Evercore ISI Sees Buyable Correction**
Julian Emanuel of Evercore ISI believes the recent market sell-off is a buyable correction within a bull market, driven by strong earnings growth. He highlights the better-than-expected earnings season as a positive indicator for investors.
**9:07 a.m.: Quality Tech Stocks Highlighted by UBS**
Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management, sees opportunities in quality tech stocks, particularly in global internet and semiconductor companies. She prefers companies with strong balance sheets and earnings growth, as well as those benefiting from AI.
**9:07 a.m.: Buying the Dip**
Peter Kraus, chairman and CEO at Aperture Investors, advocates for buying the dip, emphasizing the importance of long-term investing. He argues that even a 10% discount is a good deal, despite the potential for further declines.