Morningstar warns investors against creating narratives based on short-term market movements and encourages them to focus on the fundamental characteristics and valuations of individual businesses. The Morningstar US Market index ended the week 3.06% lower, with large technology companies leading the decline. Nvidia NVDA, for example, saw a 14.5% fall in its stock price. Morningstar Equity Analysts believe that the US equity market is currently 2% undervalued. They forecast a bifurcated outcome for the US corporate reporting season, with the largest technology companies expected to deliver strong profit growth while the rest of the market may report a decline in profits. The concentration of technology companies in benchmark indexes creates vulnerability to disappointment among investors. Interest rate cuts have weakened treasury bonds, making them more attractively priced as a source of returns and portfolio diversification. The week ahead is likely to be volatile, with economic and company data releases, including economic growth data and inflation data. Nvidia is recommended as a buy ahead of its 10-for-1 stock split, which is expected to make shares cheaper and more accessible to retail traders and individual investors. Dollar Tree is recommended as a sell due to the negative impact of rising operating costs and stiff competition on its business. The company's latest earnings and outlook are expected to underwhelm investors. [e86d0a85] [3760aa46]