CNBC Daily Open: The FOMO momentum

Stocks' streak snapped
U.S. stocks fell Friday, with the S&P 500 and Nasdaq Composite snapping their six-day winning streak. In contrast, the pan-European Stoxx 600 closed 0.53% higher. Separately, the output connected the two-year U.K. gilts, oregon treasury bond, roseate to a 15-year precocious of 4.933% aft U.K. economical information came successful hotter than expected.

Tesla's self-driving ambitions
Elon Musk said the worth of Tesla depends connected whether it tin crack the codification to self-driving vehicles. In different words, Musk thinks Tesla shares volition sprout up erstwhile the electrical conveyance institution perfects autonomous driving technology, which will, successful turn, fto Tesla owners turn their cars into robotaxis.

Amazon cancels aboriginal showcase
Amazon has canceled its re:MARS conference, which showcased developments successful futuristic technologies, this year. In past year's conference, Amazon highlighted its Alexa dependable adjunct impersonating a deceased relative. There's nary connection — dormant oregon live — whether the lawsuit volition beryllium resurrected successful the future.

Blinken successful China
U.S. Secretary of State Antony Blinken met Chinese Foreign Minister Qin Gang successful Beijing yesterday. Blinken's the highest-level American authoritative to sojourn China during the Biden administration. His travel was primitively scheduled for February, but was postponed aft an alleged Chinese spy balloon flew crossed the U.S.

[PRO] Bull now, carnivore later
"Bears similar america person been wrong," Bank of America Chief Investment Strategist Michael Hartnett admitted successful a note. There are three factors, according to Hartnett, that'll let stocks to proceed their existent rally — though helium worries it'll beryllium a "big rally earlier large collapse."

Major U.S. indexes closed little Friday: The S&P mislaid 0.37%, the Dow Jones Industrial Average slid 0.32% and the Nasdaq fell 0.68%. Despite that, some the S&P and Nasdaq person deed their highest level since April 2022, a testament to the rally's existent strength.

Investors person artificial quality to convey for those awesome figures. Microsoft, which integrated AI with its products earlier than astir different rivals, deed an all-time precocious of $342.33 per stock connected Friday aft rising much than 43% this year.

This has echoes of the 1990s, erstwhile the tech giant's banal rocketed a ridiculous 9,562% during the decade (!). But that examination has unwelcome resonances. It was, of course, close earlier the dot-com bubble burst. By October 2000, Microsoft's shares were worthy little than they were successful January 1998.

Now, I'm not suggesting the existent AI-led rally's arsenic fragile. But determination are immoderate worrying signs. As CNBC's Scott Schnipper notes, "It's not a brighter economical representation oregon an exuberant net outlook pushing stocks higher. It's momentum and fearfulness of missing retired connected further gains."

Still, it looks similar the momentum has legs. There's thing connected the skyline that looks similar a "bull trap," said Sam Stovall, main concern strategist astatine CFRA Research, meaning that markets look poised to rally further, for now.

But immoderate analysts, similar BofA's Hartnett and Savita Subramanian, the bank's apical quantitative strategist, deliberation the S&P volition decline from its existent levels astatine the extremity of the year. Market bulls mightiness yet travel implicit and exit, pursued by metaphorical bears.