US equities (^GSPC, ^DJI, ^IXIC) are on the rise after softer-than-expected US jobless claims restored some confidence back in the markets after this week’s sell-off. With so much volatility, could the markets finally be rebounding? If so, which sectors have the most to gain from it?
Charles Schwab director and senior investment strategist Kevin Gordon joins Morning Brief to give insight into the current landscape of the broader market and what investors need to know moving forward.
As to a potential bounceback in the markets, Gordon argues: “We’re probably in the middle of that second and third stage, because you definitely got too oversold in many areas, specifically tech-related.”
He continues offering which sectors might be worth investments into: “If you go back to the past peak for the S&P mid-July, the only two sectors that are underperforming the index are tech (XLK) and consumer discretionary (XLY). Clearly, there’s a consumer weakness play, I think, with the latter. But tech has been definitely the culprit there. If you look at some of the more traditional cyclicals, whether it’s financials (XLF) or even energy (XLE), they’re still down but they’re still outperforming the index.”
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Nicholas Jacobino
