Tech funds are recovering on rising Wall Street
Tuesday 09 March 2021 10:10 PM
(ABM FN-Dow Jones) US stock markets closed higher on Tuesday, thanks to strong gains from major tech funds, which slipped into correction territory in a big sell off on Monday.
The Standard & Poor’s 500 Index rose 1.4 percent to 3875.44 points, and the technology Nasdaq index rose 3.7 percent to 13073.82 points, according to the initial closing positions.
Investors appear to be looking for bargains after major tech stocks tumbled on Monday. Tesla, Rocco, and Square were two numbers higher. Heavyweight companies such as Apple, Amazon.com and Facebook increased by 4 percent.
It appears that the sell-off in the US Treasury has paused in the meantime. The yield on the 10-year Treasury fell to 1.538% from 1,594 Monday night.
“It’s a buy-and-drop mentality,” said Daniel Morris of BNP Paribas. “The long-term view of the technology hasn’t changed. Everyone expects these stocks to work well, but they have gotten very expensive.”
Tech stocks have recently come under pressure from their high valuations after a heavy sell-off in the bond markets sent yields higher.
Market experts believe that stability in the bond markets will help tech stocks recoup some of their losses.
PineBridge Investments Asset Manager Hani Reda believes the biggest moves in the bond markets are now over. “At the level that bond yields are now at, we expect additional buyers and this will lead to stable interest rates,” a market researcher said.
Meanwhile, the outlook for an economic recovery is positive and Congress is expected to give final approval to President Joe Biden’s $ 1.9 trillion stimulus package later this week.
The Organization for Economic Cooperation and Development (OECD) announced a new economic outlook on Tuesday that has become more positive about the global economy and expects the US GDP to grow twice as fast as it was previously calculated in 2021, at 6.5 percent.
On the macroeconomic front, calm prevailed on Tuesday. Business confidence in US SMEs rose from 95.8 in January to 95.8 in February, but is still well below last year’s peak of 104.5.
The EUR / USD rose 0.4 percent on Tuesday afternoon at 1.1901, and a barrel of WTI crude oil fell 1.6 percent to $ 64.01.
Electric vehicle manufacturer Tesla, which fell in value by nearly 6 per cent on Monday, made up more than that on Tuesday with a 20 per cent jump in prices. Sector Fellow Nio also rose more than 17 percent.
Chinese government data showed that sales of electric cars in the country rose more than seven times faster in February than a year earlier. On a monthly basis, there was a decrease of 38 percent. Wedbush analyst Dan Ives said Tesla sold more cars in February than the previous month, up 18 percent. Referring to the impact of the Chinese New Year, describing the numbers very impressive and also better than expected.
Dick’s Sporting Goods lost 6 per cent, despite sales and profit numbers that exceeded expectations, as forecasts indicated they were cautious.
GameStop shares are up 27 percent, after rising more than 40 percent on Monday. On Tuesday, the Senate Banking Committee will hold a hearing on the fast-selling problems surrounding GameStop and a number of other huge stocks, which caused prices to spike sharply in late January and then collapse again.
AMC Entertainment, another share called meme, which was promoted by users of the social media platform Reddit, was worth a lot again on Tuesday.
ABM Financial News; [email protected]; Revised text: +31 (0) 20 26 28999.