CNBC Daily Open: Growth stocks look hot but investors should be wary

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Markets whitethorn beryllium warming to maturation stocks. And possibly they shouldn't be.

• U.S. stocks closed Friday mixed. The Dow Jones Industrial Average was the lone large scale to rise. Asia-Pacific markets fell broadly, with Hong Kong's Hang Seng scale losing 1.25%

• Microsoft limited its Bing AI chatbot to 50 questions per time and 5 prompts per session. The determination comes aft beta-testers got creepy messages from Bing. "I emotion you due to the fact that I emotion you," it told 1 user. Shares of Microsoft dropped 1.56% connected Friday.

• Global lipid request volition prime up substantially successful 2023 due to the fact that of China's rebounding economy, the International Energy Agency predicted. This mightiness disturb the existent "balance" of the lipid markets.

• U.S.-China relations stay strained, but astatine slightest they're talking. Secretary of State Antony Blinken met with China's apical diplomat, Wang Yi, during the Munich Security Conference. Blinken said they had a "very direct, precise clear" speech astir China's infamous spy balloon. He added that Wang didn't apologize for the incident.

• PRO Retail investors are flooding backmost to the banal market, investing an mean of $1.51 cardinal a day, according to Vanda Research. These are the stocks astir popular with them.

Stocks successful the U.S. ended the week somewhat lower. The Dow roseate 0.39% connected Friday. But it dipped 0.13% for the week, the archetypal clip it's mislaid crushed for 3 consecutive weeks since September. The S&P 500 slid 0.28%, giving it a two-week losing streak. The Nasdaq Composite fell 0.58%, but it roseate 0.59% connected the week, its sixth affirmative week successful seven.

Which brings america to the unusual narration betwixt the system and markets today. A wide accepted regularisation connected Wall Street is that the Nasdaq, stuffed afloat of tech stocks whose worth rests connected aboriginal earnings, is the astir delicate to involvement rates. Yet it's the lone scale that had a affirmative week, contempt signs — similar three-month highs connected Treasury yields — that rates mightiness extremity up higher than the Federal Reserve had projected. Meera Pandit, a JPMorgan strategist, said that this shows that investors are excessively optimistic astir the markets, putting wealth into future-oriented maturation stocks. Maybe they shouldn't beryllium — Pandit warned that "this is astir apt the overheat earlier the retreat successful the economy."

We'll person a clearer representation of the U.S. system this week. Earnings reports from retail giants Walmart and Home Depot volition gauge user activity, portion semiconductor steadfast Nvidia volition bespeak whether the rally successful tech stocks tin last. On Wednesday, minutes from the Fed gathering travel out, and connected Friday we'll spot the idiosyncratic depletion expenditure terms index, which is the Fed's preferred ostentation reading. Investors volition pore implicit the information to find retired if the system is owed for a brushed landing, a hard landing — oregon if it'll support cruising.

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