Major stock indexes fell on Friday as investors weighed in on energy supply concerns as traffic continued to tighten in the Strait of Hormuz, with certain stocks falling far too hard and too fast for the week. The market weakness has pushed some stocks in the consumer discretionary, industrials and technology sectors into oversold territory, potentially prompting a short-term rebound. Among the most oversold stocks was Meta, which faced two adverse outcomes in court last week in addition to layoffs. If a stock’s relative strength index is below 30, the stock is considered oversold. Conversely, some stocks ended the week in overbought territory. Overbought stocks are those with an RSI above 70. These stocks are likely to fall in the near future. The most oversold and overbought stocks in the S&P 500 are: Oversold stocks Meta nearly rose to the top of the oversold stocks list last week following recent layoffs, as well as two major court losses. The stock has an RSI of 22.1 and has fallen more than 11% this week. On Wednesday, a California jury ruled that Meta and YouTube were responsible for putting addictive features on their social media platforms that harmed the mental health of minors. The court ordered Mehta to pay $2.1 million in damages in connection with the lawsuit. A day earlier, a New Mexico jury also found Mehta liable for decisions that harmed young users and awarded Mehta $375 million. Meta also cut jobs at Facebook, global operations, recruiting, sales, and Reality Labs last week, CNBC reported. The layoffs added to long-standing concerns among investors about the impact of the tech giant’s frequent and costly changes in corporate strategy. Other companies in oversold territory include Estée Lauder Companies, Cintas, and Lennox International. Overbought stocks Energy names filled most of the spots on the overbought stocks list. Topping the list was APA, an independent energy company with subsidiaries that discover and produce oil and natural gas around the world. The RSI for this stock is 87.8. The company’s stock price rose nearly 14% last week. Investors are adding energy company stocks to their portfolios as the Iran war enters its fifth week. The conflict caused a series of disruptions in the supply chain and caused oil prices to soar. West Texas Intermediate crude oil futures settled at their highest price since mid-2022 on Friday. Brent crude oil futures also closed Friday at their highest level since July 4, 2022. Other names on the overbought list include Diamondback Energy, Devon Energy, and Occidental Petroleum.
