(News Bulletin 247) – The New York Stock Exchange is expected to open slightly lower on Tuesday morning, with the Nasdaq beginning to show signs of losing momentum after rising for six weeks in a row.

Half an hour before the opening, the ‘futures’ contracts on the main New York indices fell back by around 0.1%, announcing a note of weakness at the opening.

In the absence of major economic indicators on the menu for the day, investors are likely to continue their pause that began the day before following the good performances signed by the technology sector since the beginning of spring.

The Nasdaq has indeed just aligned its longest bullish series since January 2020, to now evolve to its highest since April 2022.

In recent weeks, the market rise has been largely driven by the stocks most exposed to artificial intelligence, namely Apple, Microsoft, Google, Amazon, Nvidia, Meta and Tesla.

These seven stocks alone – the ‘Magnificent Seven’ as Bank of America strategists call them – have climbed 61% since the start of the year.

But with the Nasdaq up more than 13% since March, the market now looks tired and vulnerable to profit taking.

For some analysts, the performance differential between the Nasdaq and the S&P 500, which has gained only 5% in the last three months, is beginning to recall the ‘abuses’ of the late 1990s.

The valuation of Nvidia, a specialist in semiconductors for complex calculations, is notably considered ‘above ground’ at 131x its profits recorded in 2022.

A sign of investors’ loss of appetite, Apple ended down 0.7% yesterday despite the official presentation of its ‘Vision Pro’ mixed reality headset, which marks, according to the Cupertino (California) group. , the entry into a ‘new era for computing’.

Copyright (c) 2023 News Bulletin 247. All rights reserved.