For several weeks, Nvidia (NVDA) led the stock market as the most actively traded stock. 466,033,380 shares exchanged hands at $118.11 on Monday when the stock fell by 6.68%.
Today, watch for sector rotation into less volatile technology stocks. That includes Tesla (TSLA) and Apple (AAPL). While those firms trade at a premium valuation, their share price may not fall as much.
Look for Ford Motor (F) to add to its 3.29% gain from yesterday. Buying value in the discounted auto manufacturer sector is risky. Consumers are shunning high price tags on Ford’s sporty Mustang along with its trucks. Conversely, AI stocks traded at a premium for a reason: demand for the latest Nvidia GPU chips keeps rising.
In the telecom sector, AT&T (T) is breaking out. After bottoming in April, T stock rose every day since after June 12, 2024, with no news. Investors seeking high yields may consider Verizon (VZ), whose stock yields 6.53%. In Canada, BCE (BCE) shares yield 8.75%. Although T-Mobile (TMUS) pays a 1.49% dividend yield, it trades at a reasonable 24.2x price-to-earnings ratio. It also has better growth prospects.
Buyers are adding positions in the drug manufacturing sector. Pfizer (PFE) shares bottomed out at $27.00. Abbvie (ABBV) bottomed at $155 and will open this morning at $172.74.
