Deutsche Bank predicts that the recent shift away from Big Tech and into small caps is not just a temporary trend but has the potential to continue in the medium term. According to strategist Parag Thatte, the market is currently too optimistic about the growth areas that have been driving the bull rally, and there is room for further rotation into other sectors and small caps.
On the other hand, IQVIA shares surged over 5% following the company’s second-quarter earnings report, which exceeded Wall Street’s expectations. The health tech company posted earnings of $2.64 per share on revenue of $3.81 billion, outperforming analysts’ estimates. The stock has seen a nearly 10% increase in the past month.
However, CrowdStrike faced a setback as it became the biggest loser in the S&P 500 after a recent software update led to a global IT outage. The cybersecurity stock dropped nearly 11% in morning trading, following a slide of over 11% on Friday. This decline comes as the broader market, represented by the S&P 500, saw a 1% increase in the session.
In premarket trading, stocks like CrowdStrike, Nvidia, and Bank of America made significant moves. CrowdStrike dropped 4% after a downgrade from Guggenheim, while Nvidia gained 2% on reports of new AI chips for the Chinese market. Bank of America saw a more than 1% dip after Berkshire Hathaway sold a significant amount of its shares in the bank.
Overall, the market opened higher with the Dow Jones Industrial Average gaining 125 points, the S&P 500 rising 0.65%, and the Nasdaq Composite jumping 1%. Nvidia shares also climbed in the premarket, despite a recent market rotation away from large-cap tech stocks.
Lastly, gold futures rose on Sunday after a decline on Friday, while stock futures inched higher as well. The U.S. dollar index slipped slightly, indicating potential market movements in the coming days.
