Conversely, more defensive sectors (like consumer staples, medical, and home appliances) are lagging.
An anticipation of a “Buffett retirement effect” could be hitting defensive names, which Berkshire Hathaway has traditionally sought throughout Buffett’s tenure.
After a long and storied career, the 94-year-old value investing legend is expected to publish his official farewell letter today.
Elsewhere, Gold has rallied massively, while bonds have corrected.
This flow suggests that while the shutdown uncertainty is gone, the spotlight immediately pivots back to the deteriorating US fiscal outlook and the costs of the political concessions made to reopen the government, with Republicans dominating the outlook going forward.
This discomfort with fiscal sustainability continues to underpin the resilience of precious metals.
In any case, for now, the immediate action is bullish in US indices, but more so in the tech-heavy Nasdaq.
Let’s observe intraday charts and key technical levels for the Dow Jones, Nasdaq, and S&P 500.
