Investors started to broaden their holdings beyond Big Tech stocks into overlooked parts of the market this week — but some of these names may soon be due for a pullback, according to a popular market metric. A better-than-expected consumer price index report for June raised hopes that the Federal Reserve might soon turn to cutting its benchmark interest rate. That led investors to sell many of 2024's megacap technology winners in favor of more rate-sensitive sectors, such as homebuilders and industrials, that stand to benefit from a lower-rate environment.
The Dow Jones Industrial Average , which includes Home Depot and Caterpillar , rose to a record high on Friday. With this in mind, CNBC Pro used our stock screener to find stocks with a high 14-day relative strength index. An RSI above 70 can indicate overbought conditions for a stock, possibly signaling a near-term downturn.
There were so many overbought stocks this week that we added an additional parameter: The shares also had to have risen more than 5% this week. Take a look at this week's overbought names. Readers can also use the stock screener tool to make a more thorough review of the results.
Pittsburgh-based regional bank PNC Financial is among the week's most overbought names with an RSI of around 73. Shares surged 7.5% week to date, touching a new 52-week high on Friday, amid a broad rally in regional banks following Thursday's CPI report.
Year to date, the stock is up 9.1% versus the S & P 500's 18% rise. Th.