Market Overview
The market showed a split personality on Thursday, with the Dow hitting new highs while tech names took a breather [1]. The Nasdaq slid lower despite a strong earnings report from Micron, as traders rotated out of big-name tech winners. Non-AI stocks showed strength, helping the Dow push to a new intraday all-time high. Meanwhile, the TSX outperformed U.S. equities thanks to a rise in commodity prices and precious metals [3].
Tech Stocks
Big Tech stocks like AAPL and MSFT were affected by the rotation out of tech names [1]. AAPL stock was also slammed due to price hikes for Mac and iPad products, with the stock having its worst session in over a year [2]. However, it is believed that AAPL can weather the storm. GOOGL was mentioned in the context of the tech sector's performance [2].
Investment Strategies
For investors looking to earn high income, selling covered calls on SPY could be a viable option [4]. With SPY's 30-day SEC yield at 0.97%, investors may be looking for alternative ways to generate income. This strategy could be particularly appealing given the current market conditions and the expense ratio of the ETF.