TSLA, MU are overbought and could be due for a pullback
The stock market’s run to fresh all-time highs this week has left some individual names in overbought territory, putting them at risk of a pullback. The S & P 500 reached a record of 6,600.21 after an uptick in unemployment claims and a surprise decline in wholesale prices solidified expectations for at least a quarter percentage point rate reduction from the Federal Reserve next week. The benchmark ended the week with a 1.6% gain. Certain stocks, however, may have run too far too fast. Using the CNBC Pro screening tool , we searched for S & P 500 stocks that jumped more than 5% whose relative strength index climbed to 70 or above. An RSI above 70 signals an asset may be overbought — suggesting it may be susceptible to a downdraft. Here are the top 10 most overbought stocks on the Street: Tesla and Micron Technology made the overbought list, with RSIs of 75.6 and 81.2, respectively. The electric vehicle maker added to its strong September performance with this week’s gains, putting it up about 18% month to date. The stock had been on fire since Tesla’s board proposed a nearly $1 trillion pay package for CEO Elon Musk . As for Micron, the stock soared about 20% this week for its biggest weekly performance since March 2020. Citi raised its price target on the stock to $175 on Thursday, signaling upside of 11% from Friday’s close. “Micron will report F4Q25 results on September 23 after market close. We expect the company to report in-line results and guide well above consensus driven by higher DRAM and NAND sales and pricing. We believe the continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market (55% of Micron revenue),” analyst Christopher Danely wrote. But given how quickly both stocks have risen, investors may be tempted to book profits, which will put pressure on them. Other overbought names include Warner Bros. Discovery , as Paramount Skydance prepares a takeover bid for the media giant, and Live Nation . Western Digital is the most overbought name on the list with an RSI of 84.2. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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