Bull Market Intact: Why Friday’s Plunge was Likely Overdone

From NASDAQ: 2025-02-24 14:53:00

Stocks plunged Friday, raising concerns about the US equity bull market. However, key reasons suggest the selling may be overdone. Seasonal weakness is common this time of year, with historical data providing an edge for investors. Bull market drawdowns are normal, and monthly OPEX can cause volatility. Government job cuts may not have as big an impact as feared. Sentiment is cautious, but AI spending remains strong.

Investors are skittish as major indices near all-time highs. AI and tech stocks have led the market, with Apple announcing $500 billion in AI spending. Rumors about Microsoft slowing AI spending were refuted by Jeffries. Chinese AI spending is soaring, with Alibaba investing $53 billion. Nvidia’s earnings report may provide more insight.

Zacks has released their Top 10 Stocks for 2025, handpicked for potential success. The portfolio has outperformed the S&P 500 significantly, with Sheraz Mian selecting the best 10 stocks to buy and hold. Investors can still access these top stocks early for potential gains.

Overall, despite the recent market volatility, there are reasons to believe the bull market remains intact and opportunities for growth exist in various sectors.



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