Wall Street Down, UK Surprisingly Up

Stock markets in the US and UK marched to different beats on Wednesday, with Wall Street futures trading sideways ahead of earnings from Tesla and Netflix and UK stocks and bonds rallying after a surprise drop in British inflation, Naomi Rovnick reported for Reuters.

Photo Insert: Futures trading indicated the S&P 500 and Nasdaq 100 share indices would hold steady at the market open.

Futures trading indicated the S&P 500 and Nasdaq 100 share indices would hold steady at the market open.

Tesla and Netflix are among the tech megacaps that dominate the S&P 500 and have driven the benchmark stock index to its highest in more than a year.

Tech stocks have been boosted by exuberance about artificial intelligence as well as hopes the Federal Reserve will soon end the aggressive interest rate rises which bludgeoned valuations of more speculative businesses in 2022.

Owning big tech is also the "most crowded" trade in global markets, Bank of America strategist Michael Hartnett warned in a note to clients this week. Hartnett also reported that fund managers surveyed by BofA were cautious about an "AI/tech bubble."

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