S&P 500 Slips as Meta-Led Dent in Big Tech Weighs

S&P 500

S&P 500 Index is trading down 0.37% at 4483.88

The S&P 500 closed lower Monday, as the bleeding in Facebook continued, souring sentiment on big tech and offsetting gains in value sectors of the market.

The S&P 500 fell 0.3%, the Dow Jones Industrial Average was flat, the Nasdaq fell 0.58%.

Facebook-parent Meta Platforms (NASDAQ: FB) fell more than 5% to end the day at 52-week lows, souring sentiment on big tech as the social media continued to struggle to find a bottom following a rout last week on the back of disappointing guidance. The company announced after the closing bell that tech investor Peter Thiel would be step downing from the board of Meta.

Alphabet (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) were also nursing losses as investors appear to have one eye on widely expected Federal Reserve rate hikes following last week’s monthly jobs showing a rising wage growth that could keep inflation at a red-hot pace.

“If wage growth fails to moderate, they (the Fed) will have no choice but to hike faster— and further—than they currently expect,” Pantheon Macroeconomics said in a note.

Value sectors, however, attempted to plug the gap left by tech, with financials and energy doing most of the heavy lifting.

The energy was up more than 1% even as oil prices took a breather after a five-week rally into oversold territory, but are expected to renew their uptrend as supply remains tight at a time when demand continues to rise.   

“In our opinion, a somewhat more pronounced consolidation or even correction would be well overdue after seven weeks of rising prices,” Commerzbank said in a note.

On the earnings front, meanwhile, investors digested mostly bullish quarterly results.

On technical fronts, S&P 500 Index RSI stood at 64.38, and currently Index is trading below 5 and 50 days MA & above 100 days MA. So, the SELL position can be taken with the following target and stop-loss:

TRADE SIGNAL – : S&P 500 Index – SELL: 4479.00, TARGET: 4459.68, STOP LOSS : 4513.11

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