Why BRK.B, JPM, V & MA Rose Against the Broader Market?

The market fell sharply on Wednesday. I sold $NVIDIA Corp(NVDA)$, $Tesla Motors(TSLA)$, and $Micron Technology(MU)$ on Monday. Only hold $Rivian Automotive, Inc.(RIVN)$ call target $19 and will expire on July 19th.

I lost money and didn't sell it. I plan to stop the loss in time to see what will happen in the coming two days.

In the short term, I may need to consider switching from big technology and semiconductor fields to some small-cap stocks and value stocks.

In addition, if there are really bearish stocks, I may consider buying PUT options.

Reviewing yesterday's market situation:

Among the $S&P 500(.SPX)$ , $Berkshire Hathaway(BRK.B)$ was the only one stock rose among the top ten by market capitalization.

Then I saw financial services companies $JPMorgan Chase(JPM)$ , $Visa(V)$ and $MasterCard(MA)$ have rose for several days and performed strongly.

Most of the financial companies have released Q2 earnings results last week.

See the analysis by @MaverickWealthBuilder on Q2 Earnings Special: Big Banks In Divergence

Regarding the market sentimete shifs and why the value stocks rebound. There could be 2 reasons:

1) Due to Mag 7, stagflation of big tech stocks, correction and capital rotation of investments in small cap and value stocks.

2) As interest rate cut expectations are getting closer, investors are more optimistic about the prospects of bank stocks. (Also, bank stocks usually have higher dividend yields, making them more attractive in a low interest rate environment)

Some additional observations for $Berkshire Hathaway(BRK.B)$ , $JPMorgan Chase(JPM)$ , $Visa(V)$ , $MasterCard(MA)$ :

$Berkshire Hathaway(BRK.B)$ has continued to hit new highs recently, up 24.94.2% this year, and has outperformed $S&P 500(.SPX)$ in the past 3 years. Currently, Berkshire Hathaway's market value is about $9,615.42 billion, and Buffett holds about 15% of the company's shares. Berkshire Hathaway's current price-to-earnings ratio is about 22 times its expected earnings in 2024, slightly lower than the S&P 500's 23 times.

$JPMorgan Chase(JPM)$ 's latest earnings report exceeded expectations, but its earnings benefited from a one-time gain from $Visa(V)$ 's equity swap. Recently, $JPMorgan Chase(JPM)$ appeared on CNBC host Jim Cramer's TOP 10 undervalued stock to buy, and ranks 2nd on the list.

He said JPMorgan Chase is one of the "best banks in the world" with a price-to-earnings ratio of only 12 times. He believes the stock market value could reach $1 trillion.

Recently, JPMorgan Chase issued $9 billion in bonds in the U.S. investment-grade market, becoming the first of the expected bond issuance wave of the six major Wall Street banks.

Both $Visa(V)$ & $MasterCard(MA)$ has rebounded since last Wednesday's low and has risen for 6 consecutive days. It has risen 4.74% and 5.78% so far this year, respectively, and is standing on some major trend lines.

In addition to these stocks, there may be other stocks worth paying attention to. Welcome Tigers to communicate.