Stock futures on Friday suggest investors are cautious about buying Friday’s dip, which marked the worst day for the S&P 500 and Nasdaq Composite since April.
Tech stocks could experience a Brexit-like episode, A well-known Wall Street guru said on Friday. He also believes that after the inflation data in the United States, which fell to 3% year-on-year in June, a major test is brewing.
Stock futures on Friday suggest investors are cautious about buying Friday’s dip, which marked the worst day for the S&P 500 and Nasdaq Composite since April.
“There could be more pain ahead,” warns Judd Arnold, chief investment officer at Lake Cornelia Research Management, in a note to clients, saying stocks could be facing a repeat of recent history (Brexit) if that sell-off continues on Friday.
The sell-off came as investors poured into small-cap stocks and other shares seen as likely to benefit from the Federal Reserve’s rate cuts following the inflation data and dumped popular Big Tech names like Nvidia. The fall also seemed to hit hedge funds, which were forced to unwind short bets on small- and mid-cap stocks.
What the guru says
“This could well turn out to be the 2016 ‘Brexit’ event, where FAANGMTs fell sharply for 2-3 days and then recovered,” the analyst wrote.
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Granted, he also said it could be the beginning of a Y2K-style paradigm shift, or nothing significant.I have no idea, other than noting that today is a big event and the next few days will probably be as well.“, said.
Source: Ambito
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