From Nasdaq:

The markets and the economy are thriving, with the Nikkei hitting all-time highs after 34 years. However, equities are driven by just a few stocks, with the top 20 contributing over 80% of the gains. Market breadth is not encouraging, but 73% of S&P 500 members are above their 200-day moving average. Piper Sandler recommends focusing on quality stocks until there is a broader earnings recovery. Berkshire Hathaway’s shares jump as the conglomerate nears a $1 trillion valuation, reflecting positive economic surprises and strong risk appetite in the market. Credit spreads remain tight, and US 10-year yields are holding above 4%. Inflation data and ISM Manufacturing will be closely watched. Globally, there are concerns about a potential housing market turning point, challenges to achieving climate targets, and geopolitical issues in Europe, the US, and China. Oil prices are fluctuating, driven by global economic trends and geopolitical tensions. China is considering expanding its carbon trading system to meet its climate goals. Market indicators suggest a cautious outlook as investors await more clarity on future earnings and economic recovery.



Read more at Nasdaq:: Quality Still Matters | Nasdaq