To The Moon

Last night we saw the US indices experiencing a downturn, with S&P 500 (-0.7%), Dow Jones Industrial Average (-1.0%), Russell 2000 (-1.8%), and Nasdaq Composite (-1.0%). Though the afternoon session saw some recovery, but there is no clear member catalyst for any improvement. A consolidation phase after a strong start to 2024 could be the reason for the decline yesterday. Further we saw rising market rates due to solid economic data and persistent inflation concerns, these factor influenced the decline. The yield on 10-year note increased to 4.357%. Sectors Under Pressure The health care (-1.6%) and consumer discretionary (-1.3%) sectors were the poorest performers of the day, while the energy sector saw a 1.3% increase, buoyed by a 1.7% rise in WTI crude oil futures to $85.18/bbl, amid geopolitical tensions in the Middle East. Health insurers faced significant losses, particularly Humana, $CVS Health(CVS)$ , and UnitedHealth following the CMS's decision to maintain the Medicare Advantage plans payment rate increase at 3.70%, contrary to expectations for a higher rate. In the retail sector, PVH Corp reported disappointing quarterly results, causing concern over consumer spending and leading to a downturn in retail stocks, including a 2.8% drop in the $SPDR S&P Retail ETF(XRT)$. What To Look Out For : Energy Stocks Commodity prices showed an increase in crude oil, natural gas, gold, silver, and copper, reflecting global market dynamics. If we looked at the winners in the energy stocks, we could see that $Marathon(MPC)$ $Phillips 66(PSX)$ $Valero(VLO)$ has risen more than 2%. We will need to look at the OPEC+ meeting today (03 April 2023), the oil producers is unlikely to change the output policy after the crude oil hits a 2024-high. At time of writing Brent crude stayed above $89 per barrel after coming up from $77 at end of 2023 on Tuesday (02 Apr). Summary It might be time for investors to take a look at their portfolio as inflation remains sticky as seen from the economic data. So the defensive stocks might not seem to be a good bet now, we could look at the energy and commodity stocks during this period. Appreciate if you could share your thoughts in the comment section whether you think energy would be the sector to look at now? @TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts. Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.