U.S. stocks showed signs of potential stagnation after reaching record highs, as noted by Fundstrat technical strategist Mark Newton. He observed that cross-asset volatility is increasing, influenced by a global rise in long-end Treasury yields.
Despite U.S. equities achieving new all-time highs this week, largely driven by Nvidia and the so-called Magnificent Seven stocks, Friday's trading session indicated the first significant signs of a bearish reversal in both the S&P 500 (SPX) and the Nasdaq-100 (QQQ).
This shift comes after a notable 17% rally over the past seven weeks, suggesting that the market may be entering a more cautious phase