The Stock Market Has Lots of Questions—and Not Many Answers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# The Stock Market Has Lots of Questions—and Not Many AnswersBy [Jacob Sonenshine]ShareResize---ReprintsIn this article[DJIA][SPX] [CO ...

ToplineThe S&P 500 surpassed 7,000 points as trading opened Wednesday, the latest milestone for the nearly 70-year-old index as big tech has boosted the market in recent years. The index, tracking the largest American companies, is fueled by big tech's skyrocketing growth.AFP via Getty ImagesKey FactsThe S&P 500 briefly rose to 7,001 shortly after trading commenced on Wednesday, before gains pared back to just 0.2% below the 7,000-point threshold.Broader gains were headlined by Intel, whose shares surged 9. ...

A veteran money manager shares his top picks. ...

Core Viewpoint - Investors are anticipating that major technology companies will help revitalize the market, which has been sluggish in January [1] Group 1 - The performance of Big Tech is seen as crucial for market recovery [1] - There is a general sentiment among investors that these companies can lead the way out of the current market downturn [1]

Christine JiChristine Ji is a reporter covering Big Tech. ...

Core Insights - The article discusses the latest developments in the Big Tech sector, highlighting significant trends and shifts in the industry landscape [1] Group 1: Industry Trends - Big Tech companies are increasingly focusing on artificial intelligence (AI) to drive innovation and enhance their product offerings [1] - There is a growing regulatory scrutiny on Big Tech firms, with governments worldwide considering stricter regulations to address concerns over data privacy and market monopolies [1] Group 2: Company Developments - Major players in the Big Tech sector are reporting strong financial results, with several companies posting revenue growth exceeding 20% year-over-year [1] - Investment in research and development (R&D) is at an all-time high among Big Tech firms, reflecting their commitment to maintaining competitive advantages through technological advancements [1]

Shares of Nvidia ( NASDAQ: NVDA ) are also on the move after Wolfe reiterated an outperform rating on the stock. ...

Core Insights - The 2008 financial crisis was primarily caused by a collapse in the American housing market and a significant stock market decline, leading to high unemployment and the Great Recession [1] - The next economic downturn is anticipated to stem from tech stocks rather than a mortgage crisis, with the S&P 500 heavily weighted towards technology and AI-related companies [2][3] Group 1: Market Dynamics - The S&P 500 experienced a drop of over 50% during the 2008 crisis, indicating the potential severity of losses in a future downturn [5] - Current market growth is largely driven by technology and AI, raising concerns about a possible market crash if these sectors fail to deliver expected returns [3][6] Group 2: Portfolio Considerations - Average portfolios today could potentially lose up to 50% of their value in a market crash, depending on their diversification [4] - A diversified portfolio, which includes a mix of ETFs, bonds, and digital assets, is more likely to withstand market downturns compared to portfolios heavily concentrated in tech or AI [5]

Core Viewpoint - Defensive stocks are characterized by companies in sectors that provide essential goods and services, maintaining constant demand regardless of popularity trends [1] Group 1 - Defensive stocks are defined as stocks in companies that supply goods and services that are always in demand [1] - These stocks do not follow trends of popularity, indicating their stability in various market conditions [1]

For most Big Tech stocks, forward price/earnings ratios have declined recently, and it is not only because share prices have fallen. ...