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U.S. equity index futures little changed: Dow up ~0.2%
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Euro STOXX 600 index ~flat
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Dollar ~flat; gold down; bitcoin edges up; crude up >2%
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U.S. 10-Year Treasury yield edges up to ~3.94%
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S&P 500 TECH: AFTER TUMULTUOUS 2022, TRADERS TAKE NOTE OF A
TURN (0900 EST/1400 GMT)
Going into the last trading day of the month, the S&P 500
tech sector is on track to be the only S&P 500 sector to post a rise in February.
SPLRCT is clinging to a 0.5% gain for the month vs an SPX
drop of 2.3%. For the year, tech is up about 10% vs a 3.7% rise
for the SPX.
Last year, tech lost about 29% vs a 19% decline for the S&P
500.
This year's tech strength coming as chips and FANGs make a
big comeback. The Philadelphia semiconductor index is up
about 17% already this year, while the NYSE FANG+TM index is up 23% so far in 2023. NYFANG counts four SPLRCT
names among its 10 members.
Meanwhile, of note, the SPLRCT/SPX ratio topped in December
2021 exactly at its year-2000 peak:
With its Y2K top, tech then suffered a multi-year collapse and relative strength decline into its 2002 low. More recently, in early January, the SPLRCT/SPX ratio fell to its lowest level since June 2020. However, since then, tech is clearly back in favor. The ratio has reclaimed its 50 and 200-day moving averages, and overwhelmed the resistance line from its high. The ratio has since dipped back, but is so far using the broken resistance line as support. Bulls will now want to see the ratio quickly thrust higher again. Clearing the early-August high would break the pattern of lower peaks and troughs from late 2021.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
