Nasdaq-100 Continues Record Streak

The tech-heavy Nasdaq-100 has been on a remarkable run, going 303 trading sessions without a pullback of 2.5% or more. This streak, noted by Jonathan Krinsky, chief market technician at BTIG, is the third-longest since 1990.

Market Technician's Thoughts

While this streak is impressive, Krinsky believes that the market is overdue for some volatility. He anticipates a potential shakeout in the near future.

ETF Performance

The Invesco QQQ Trust Series ETF (QQQ), which mirrors the Nasdaq-100, has been breaking records left and right in 2024. With 14 consecutive record highs, the ETF reached $445.61 on its latest high, marking a 1.5% increase on Friday.

Recent Pullback

The most recent significant pullback of 2.5% or more for QQQ took place on Dec. 15, 2022, when the ETF experienced a 3.4% decline, according to FactSet data.

Nasdaq-100 Records Achieved Without Apple Inc.

In a surprising turn of events, the Nasdaq-100 has been setting records without the assistance of tech giant Apple Inc. (AAPL). Despite Apple experiencing a 9.1% decline this year, the Nasdaq-100 has managed an 8.3% increase, as reported by FactSet.

Divergence Among Megacap Tech Stocks

Since the beginning of 2024, divergence in the performance of popular megacap technology stocks has been evident. This is a stark contrast to 2023, where all the 'Magnificent Seven' tech stocks contributed to driving gains for the S&P 500.

Monday's Market Movement

Illustrating this trend, Monday's market session showcased notable shifts among key tech stocks. Nvidia Corp. (NVDA) saw a 3.6% increase, while Tesla Inc. (TSLA) experienced a 7.2% decline. Alphabet Inc. (GOOGL) also dipped by 2.8%, along with Apple's 2.5% decrease.

Looking Ahead

Despite some diversification beyond the 'AI' trade, concerns remain about the one-way momentum in many tech stocks. Analyst Krinsky emphasizes that while this trend may be positive in the short term, it could have consequences.

Weakness Impacts Nasdaq

The underperformance of various megacap names had a noticeable impact on the Nasdaq on Monday, highlighting the ongoing shifts within the tech sector.

Stock Market Overview

Nasdaq-100 NDX and Nasdaq Composite COMP

Both the Nasdaq-100 NDX, comprising the 100 largest nonfinancial stocks on the Nasdaq, and the Nasdaq Composite COMP, encompassing over 3,000 listed stocks, saw a 0.4% decline.

S&P 500 SPX and Dow Jones Industrial Average DJIA

The S&P 500 SPX also experienced a slight decrease after a brief surge towards positive territory. The Dow Jones Industrial Average DJIA closed lower as well.

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