Is the US tech stocks rally ended?
- 21 July 2023
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Is the US tech stocks rally ended?
Yesterday has been a negative day for the US tech stocks market.
The tech-heavy Nasdaq Composite has gone down by 2.05% marking the biggest one-day decline in more than four months.
Shares of Tesla and Netflix were the most shorted yesterday, and they respectively reported a loss of 9.7% and 8.4%.
The electric vehicle maker, Tesla, has mainly gone down after Wednesday’s report about the profit margins that slipped due to the continued price reduction of its cars.
For Netflix, the reason why its shares dropped, is the disappointment regarding the miss of the expected sales.
Investors are now questioning if the bull run, boosted by the hype for Artificial Intelligence, has ended.
$2.4 Trillion Options expire today
Today, Friday 21 July is a special day for the US stock market because about $2.4 trillion of options contracts are going to expire.
This event is called OpEx and will add volatility to the markets due to possible actions that Wall Street’s managers will do when the contract’s mature date has been reached.
It is worth mentioning that on Monday, 24 July, will take effect the special Nasdaq stock rebalance where the big seven tech stocks will see their dominance reduced, inside the index, in favour of the small caps.
Portfolio update
I am rebalancing my portfolio gradually.
I am adding new positions and will close some in the upcoming months.
If you are already copying my portfolio, please keep the copy open.
If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).
Remember to copy the open trades to optimize the copy.
Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.
Thank you, everyone. Have a nice day!
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