The $ 1.9 trillion relief bill for Covid-19 lifted investor sentiment
Stocks made an impressive comeback this week as investors celebrated the Covid-19 incentive and bond yields fell. Things got off to a good start on Monday after US President Joe Biden received the $ 1.9 trillion bailout Blessing from the SenateThis paves the way for direct payments to millions of Americans, unemployment benefits, and aid to state and local governments. In response, the Dow hit a brand new intraday high. Optimism persisted until Tuesday when bond yields fell and investors rushed back into the tech sector. That helped the Nasdaq get its score the best day since November and also pushed the Dow to another intraday record.
Investors were still on the rise on Wednesday and the wave of lower bond yields. President Biden promised the $ 1,400 stimulus checks would expire this month. No wonder, then, that Wall Street’s “fear knife” – the Cboe Volatility Index (VIX) – has fallen to its lowest level in two weeks. Thursday brought even more tailwind, and the president signed that Covid-19 discharge law earlier than expected, the Dow and S&P 500 pushes to record deals. An increase in 10 years of treasury yield held more gains in check on Friday, though the Dow was still heading for a record close and its sixth straight win. At the last review, all three major benchmarks were on track to weekly gains.
Tech sector is making great strides
The tech segment was the focus this week. On the one hand, the newly listed Bumble (BMBL) was enthusiastic fresh analyst coveragewhile calls were made at twice the typical amount in the option pits. Meanwhile, the cybersecurity name McAfee (MCFE) rose after the announcement of the Selling $ 4 billion from its profitable corporate business to a consortium led by the Symphony Technology Group. And although Digital Turbine (APPS) fell, it flashed bullish signal that could point to a comeback. Similar, Blue chip concerns Microsoft (MSFT) pulled out after it became known that thousands of its customers had been hacked.
However, China-based search engine giant Baidu (BIDU) rose sharply after the company opened the green light to list its shares on the Hong Kong Stock Exchange (HKEX). Blackberry (BB) was in focus even weeks after its Reddit fueling Trading frenzy. In terms of earnings, Oracle (ORCL) attracted a number of bull notes thanks to a third quarter fiscal year earnings Beat sales. On China-based stocks, Alibaba (BABA) made headlines again as records may have been broken Fines.
Retail stocks are in the spotlight
Also this week, some big retail names were in the spotlight. VF Corp (VF), the parent company of brands like The North Face and Timberland, was higher, according to pivot research Bull Note. Stitch Fix (SFIX), on the other hand, drew mixed reactions by analysts based on a weak earnings report for the second quarter of the fiscal year. Express (EXPR) had a significantly better trip to the confessional Sales estimates. And while Bed Bath & Beyond (BBBY) struggled, it withdrew to one bullish trend line. Party City (PRTY) wasn’t that lucky and fell after a fourth quarter loss of earnings. Finally newcomer Poshmark (POSH) falls the charts due to a gloomy forecast.
All eyes on the Fed’s rate decision next week
The week ahead brings a flurry of economic data for investors to digest, including retail data, the import price index and another round of jobless claims. Wall Street will also focus on the latest developments from the Federal Reserve Interest rate decision. In terms of revenue, the calendar looks relatively bleak, although big names like Nike (NKE) and FedEx (FDX) will continue to report. You can now be one step ahead of next week’s events by learning what to expect after a year Nasdaq correction, and uncover why big-cap stocks can go under further selling pressure.