Impulses, economic policy and rising bond yields made for a volatile week
It was a week of ups and downs for Wall Street, with momentum, the Federal Reserve’s policy decision and rising bond yields that took investors on a rollercoaster ride. The week started with one positive noteThe Dow returned to seven straight wins and made a closing high. The news that the Internal Revenue Service (IRS) had begun processing stimulus payments of $ 1,400 was news that lifted investor sentiment. However, a number of European countries have suspended AstraZeneca’s (AZN) Covid-19 vaccine to keep profits in check. Tuesday brought headwinds for investors held his breath about the Fed’s decision, fear that interest rates would rise. In response, both the Dow and the S&P fell out of favor, despite the latter’s intraday record.
Those fears subsided Wednesday after the Fed confirmed there would be none Rate hikes until at least 2023, with Fed chairman Jerome Powell noting that it would take sustained movement of inflation rates above 2% to change current cautious policy stance. The top three benchmarks rose, and the Dow and S&P 500 hit new records. However, rising bond yields sparked fears among traders on Thursday, forcing them out of growth stocks. At its peak, the yield on 10-year government bonds was over 1.75% highest level since January 2020. In return, the tech-heavy Nasdaq posted a three-day winning streak and the Dow fell from another intraday high. Finally, stocks were mixed on Friday after the Fed tried not to extend the stock additional leverage ratio for banks. At the last review, all three main indices were targeting weekly losses.
The tech segment continues to attract attention
The tech sector was in the spotlight again this week. Right off the bat, Micron Technology (MU) battled for direction after announcing plans to sell its products Factory in Utah that makes his 3D Xpoint memory chip. Meanwhile, the cybersecurity name Crowdstrike (CRWD) was higher after the fourth quarter earnings and revenue surge that hit six points Price target increases. PayPal (PYPL) was also higher, although it was recently placed near a by a decline historically bullish trend linewhich could soon bring it closer to all-time highs. However, the name of the electric vehicle Nikola (NKLA) fell after its strategic partner Hanwha announced it would sell up to half an A. 5.65% of the shares in the company.
Reopening stocks make the headlines
With the introduction of the Covid-19 vaccine, investors are keeping an eye on stocks linked to an economic reopening. Dollar General (DG) has upgraded from “neutral” to “overweight”, with the analyst reporting a Sales surge after another round of stimulus checks. Carnival (CCL) was also very popular when CEO Arnold Donald reported to the Financial Times to the cruise line full fleet could sail until the end of 2021. Similarly, AMC Entertainment (AMC) rose higher after reopening Locations in California this week.
The gambling name Penn National Gaming (PENN) pulled out, though that decline may have positioned equity for even more Record highs in the near future. After all, MSG Networks (MSG) was higher after Bloomberg reported the company could merge with Madison Square Garden Entertainment (MSGE) to undo the split from last year.
The last full week of March brings a number of indicators
A year after the Covid-19 pandemic, the market has come a long way. Investors use economic indicators as a guide to gauge progress since the lockdowns. Next week will be no different with the latest round of jobless claims, in addition to new and existing home sales, goods orders, and inflation data. The earnings community will be relatively calm, although investors will continue to expect to hear from Adobe (ADBE), Carnival (CCL) and GameStop (GME), among others. While you wait is here what to expect after a huge The Russell 2000 Index (RUT) and the S&P 500 Index (SPX) are rising. Then you can Test the performance of stocks that rose during the SPX’s decline.