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The S&P 500 had trouble lifting off today, courtesy of a thousand-pound weight: NVDA. Today’s price action shows once again that this is the stock. Nine other sectors actually finished higher for the session.
The rally that counts today is the energy sector – largely the result of the fundamentals of oil and even energy. The oil futures market is in backwardation right now, which is to say futures are trading at a discount to the spot price. This tells us, not in so many words, that the risk of an oil shortage – not unheard of in summer – is still being priced in.
Utilities, financials, and consumer staples are positive for the day, too, though hard to grab onto.Treasury yields are consolidating and PCE inflation data hits on Friday. Any bullish perch is rather precarious right now.
Now let’s talk about what to do about all of this – we’ll cover tickers like DVN, XOM, GLD, and more, too.
