![]() More importantly, the earnings outlook for 2021 continues to improve and the Fed has once again committed to keeping its interest rates low and maintaining its easy-money policies. Nonetheless, the pullback from all-time highs just a few weeks ago comes as fourth quarter financial results continue to come in far stronger than projected. The rising yields also highlight the somewhat stretched valuations of tech stocks. Wall Street is currently ramping on its bet on more government spending and a major economic rebound, driven by a successful vaccine rollout, which conjures up inflation talk. Treasury yield has surged from 0.90% at the start of 2021 to over 1.50% on Thursday, which has pushed them back up to where they were early last year. The recent downturn, which has pushed the tech-heavy index roughly 7.5% below its February 12 records, coincides with an ultra-fast climb in U.S. Thursday’s rout spread far and wide and investors continued to sell high-flyers such as Tesla TSLA and Nvidia NVDA, while also dropping the global titans like Apple AAPL to Microsoft MSFT. The Nasdaq tumbled 3.5% during regular trading on the second to last trading day of February, with the S&P 500 down 2.5%.
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