The Best Way to Generate Money From NVIDIA While Waiting for a Rebound

Microsoft recently formed a concerning chart pattern known as a “death cross,” which occurs when the 50-day moving average falls below the 200-day moving average. Technical analysts often interpret this as a bearish signal, suggesting potential further declines. Other stocks may soon follow Microsoft in forming this ominous pattern.

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This development comes during a challenging period for the broader market. Major indexes are on track to end both the week and month in negative territory, weighed down by growing concerns such as geopolitical tensions, rising global trade frictions, and stretched valuations—especially after last year’s AI-driven market rally. Additionally, recent economic data has raised fears about slowing growth and weakening consumer confidence.

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In light of this volatility, CNBC Pro identified stocks that are approaching a death cross formation. The search focused on companies where:

• The gap between the 50- and 200-day moving averages is narrowing
• The 50-day average has not dipped below the 200-day in recent months
• The two averages are within 3% of each other

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Several stocks met these criteria and may soon form a death cross:

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Caterpillar

Caterpillar’s 50-day moving average, at $365, is closing in on its 200-day average of approximately $361. The stock has struggled recently, dropping 7% this month, partly due to increasing trade tensions. Additionally, the company’s mixed fourth-quarter results, reported in late January, have added further pressure.

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Despite these headwinds, UBS upgraded Caterpillar to neutral from sell earlier this month. The firm cited a balanced risk/reward profile and a “reasonable initial 2025 outlook” as reasons for the upgrade.

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Las Vegas Sands

Las Vegas Sands is also on the verge of a death cross, with its 50-day average hovering just cents above the 200-day level. The stock has faced significant pressure, falling 13% year-to-date and 2.8% in February alone.

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Vulcan Materials

Vulcan Materials is another stock nearing this bearish pattern. Its 50-day moving average is around $264, closing in on the 200-day average of $258. The stock has fallen approximately 4% in 2025, underperforming the S&P 500 materials sector, which has gained nearly 5% during the same period.

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Eaton

Eaton has already crossed into death cross territory. The power management company’s stock has dropped more than 13% this year as enthusiasm for the AI trade has cooled.

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Eaton had a strong 2024, driven by optimism around its role in providing electrical infrastructure for AI data centers, such as transformers. Despite the recent decline, the stock remains up over 46% in the past year.

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Ross Stores

Ross Stores is also on the brink of a death cross, with its 50-day and 200-day moving averages both sitting just above $146 as of Thursday’s close. The stock last formed this bearish pattern in 2023.

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Shares have declined 7.2% this year, despite the company being viewed as a resilient option in a high-inflation environment.

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J.B. Hunt Transport Services

J.B. Hunt’s 50-day moving average has been fluctuating around its 200-day level. The 50-day crossed above the 200-day in late 2024 after remaining below it for most of the previous year.

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By Thursday’s close, the 50-day stood slightly above the 200-day at around $171. So far in 2025, the stock is down 5.4%.

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Trane Technologies

Trane Technologies has not experienced a death cross since mid-2022, but the pattern may soon reappear. The company’s 50-day moving average is now nearing its 200-day, which is positioned at $366.

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Shares have dropped more than 6% year-to-date. The company, known for producing energy-efficient heating, ventilation, and air conditioning (HVAC) systems, has lost momentum amid former President Donald Trump’s critical stance on climate initiatives and green investments.

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Hubbell

Hubbell, a manufacturer of electrical products, is also in danger of forming a death cross. Its 50-day moving average is currently about $3 above its 200-day level.

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The last time Hubbell’s stock formed this pattern was in mid-2022, during a broader bear market on Wall Street.

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PTC

PTC has already entered death cross territory. The stock’s 200-day moving average, at $181.15, recently moved above the 50-day average, which is hovering near $180.

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Overall, the emergence of these potential death crosses underscores growing uncertainty in the market. With rising macroeconomic pressures and weakening sentiment, investors are closely watching whether more stocks will follow Microsoft’s lead in forming this bearish technical signal.

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