U.S. software stocks fell on Thursday after SAP’s cautious cloud outlook and a post-earnings drop in ServiceNow shares reinforced investor concerns about mounting competition from artificial intelligence-related companies.
Source: https://www.reuters.com/business/us-software-stocks-slide-af…
State Street SPDR S&P Homebuilders ETF remains a Sell due to technical weakness and high downside risk. XHB’s holdings offer sector diversity, but macro headwinds—rising rates, inflation, and market overvaluation—diminish near-term appeal. The probability of further downside is implied based on the fund’s technicals and drawdown history, underscoring risk.
AbbVie is a Dividend King poised to deliver solid growth. Chevron is well-positioned to capitalize on the new opportunities in Venezuela.
VanEck Semiconductor ETF is reiterated as a “Buy,” with shares at all-time highs and strong recent momentum. SMH’s valuation, now in the low-20s P/E, remains compelling given a 15% long-term EPS growth rate and robust sector leadership. Top holdings like NVDA and TSM have increased concentration, making monitoring their fundamentals and technicals crucial.
