Wall Street

The markets remained mixed heading into a new week on Monday, but technology really got shellacked as investors are more interested in recovery names at the moment.

Contrary to what we saw throughout the pandemic, the NASDAQ has been lagging its counterparts recently. However, today’s pullback was on a different level as the index plunged 2.46% (or more than 340 points) to 13,533.05. That’s the worst session of February and second steepest loss of the year so far (after the 2.61% drop on January 27).

Unsurprisingly, the FAANGs took it especially hard, including Apple (AAPL, -2.98%), Amazon (AMZN, -2.13%), Alphabet (GOOG, -1.73%) and Netflix (NFLX, -1.19%). And for good measure, we also saw big declines from former high-flyers Tesla (TSLA, -8.55%) and Microsoft (MSFT, -2.68%).

The S&P has its own problems as today marked its fifth straight session in the red. The broad index, which also has heavy exposure to tech, slipped 0.77% to 3876.50.

Meanwhile, the Dow not only managed to close in the green on Monday, but it also staged an impressive comeback after dropping well over 100 points earlier in the day. It was up 0.09% (or about 27 points) to 31,521.69.

The Dow was the only major index to finish in the green last week… though it did so barely by rising only 0.1%. The S&P slipped 0.7% over the four days, while the NASDAQ dropped 1.6%.

Despite all the good stuff out there (e.g. stimulus, vaccines, a strong earnings season); investors are a bit wary of rising bond yields and higher inflation right now. They see this as a good time to move money out of the flashy tech names and into areas that should benefit from the economy reopening.

Of course, the big concern is the Fed raising rates faster than expected, which means all eyes will be on Chair Jerome Powell’s testimonies in front of Congress this week. He’ll certainly reiterate the Committee’s support for the economy, but no one knows what this skittish market will focus on.

Mr. Powell will be in front of the Senate Banking Committee tomorrow and then the House Financial Services Committee on Wednesday. And let’s not forget that this week will also see hundreds more earnings reports as this better-than-expected season continues.

Original Article – Latest Article Feed

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
New Market Highs - Protect Your Gains

Get this Free E-Book

How to lock in your profits against another crash