Markets may have continued their run for much of this year after a bullish 2023, but stocks pulled back last week. The Dow Jones Industrial Average posted its worst weekly performance since March 2023 last week, while the S & P 500 declined nearly 1% — its biggest weekly loss since early January. Overall, however, markets — including global stocks — are still very much deep in positive territory. The S & P 500 is up around 9.6% year-to-date, and in fact hit new record highs in March . Global stocks outside of the U.S. have also had a nice run, with the FTSE All World Ex US index rising nearly 8% year-to-date. Against that backdrop, the question remains: Will their outperformance last? “March was another positive month for markets, continuing the rally to start the year. Improving corporate fundamentals and a supportive economic backdrop drove solid single-digit returns for U.S. markets during the month,” Commonwealth Financial Network said in an April 6 note. “This capped off a strong quarter for U.S. stocks, an encouraging sign that the economic and market momentum from 2023 has carried over into 2024.” While stocks are in a “pretty good spot,” it said, markets may face short-term setbacks, citing risks such as conflicts in Ukraine and the Middle East and shaky global supply chains. The relative strength index (RSI), which measures the magnitude and speed of price moves, can be used by investors to determine if shares are overbought. Stocks with a 14-day RSI higher than 70 are likely overbought and may be due for a pullback. CNBC Pro screened the S & P 500 and the Vanguard FTSE All-World ex-US ETF for the most overbought names, using a 14-day RSI of higher than 70. These are among the top overbought names in the S & P 500, according to FactSet.
Read More: These overbought global stocks could be due for a pullback
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