Growing expectations for U.S. economic growth with the cost of turbo have been rearranging stock market winners and losers for the past two months.
Investors rallied back into the most risky funds on the market Tuesday as dip buyers powered the Nasdaq 100 to its biggest rally since April and pushed Bitcoin back to record highs. Finance added to profits after pound auction.
Winners stayed at home after being left dead as the vaccine lifted and Democrats moved to bring in $ 1.9 trillion into the economy. Treasury yields will be withdrawn from recent highs caused by concerns that a recession in the economy will lead to inflation. For a day, at least, the shift from growth segments to value turned violent. Here are some of the key trends:
- Leap Tesla Inc. nearly 20% in its best day in a year.
- Peloton Interactive Inc., DocuSign Inc. has assembled. and Pinduoduo Inc. over 11%.
- Finance companies and energy producers, who recently won, were the only two S&P 500 groups to return.
- Spot gold rose more than 2% after falling to its lowest level since April.
- The 10-year yield fell below 1.55%.
- Bitcoin jumped over $ 54,000.
- Oil and copper have fled after recent rallies.
Growing expectations for turbo-charged economic growth have been rearranging market winners and losers for the past two months as the passage of the stimulus bill becomes more likely and increasing daily vaccinations. On Tuesday, dip buyers were targeting the recently abandoned areas as too expensive. The reversal is a theme that has been in play for years, every retreat is bought, and it has been a rarity lately. The S&P 500 has not been a 5% withdrawal since November.
The decline in Treasury yields following the recent violent run has given risk takers some cover for a reversal of growth after the group quit as stretch valuations began to look alarming. with rising rates.
“Let’s not forget that traders less than a year ago described one of the biggest negative macro events in the history of the market as a buying opportunity, so there is little reason to think about it. another way with the positive signals around us today, ”said Chris Larkin, managing director of trading and investment products at E * Trade Financial. “Corrections create natural points of inclusion for traders. It’s no surprise to see Nasdaq rise today, and the fundamentals support continued bullishness. ”
The first of several Finance sales in the coming days went off without disturbing markets. The sales test a desire for the safest debt after last month’s bad offer auctions that slashed movements across global markets and a short bet climbed to a record. A 10-year benchmark yield broke the 1.6% level for trading at last year’s one-year level.
Here are some key events to watch:
- The EIA crude oil inventory report is expected on Wednesday
- The February U.S. consumer price index will provide the latest view of price pressures on Wednesday.
- The U.S. government will sell 3-, 10- and 30-year ropes this week.
- The European Central Bank will hold its monetary policy meeting and President Christine Lagarde is to make a briefing on Thursday.
Stockings
- The S&P 500 Index recorded 1.9% as of 3:30 pm New York time.
- The Nasdaq 100 added 4.6%.
- The Stoxx Europe 600 Index gained 0.8%.
- The MSCI Asia Pacific Index increased 0.8%.
- The MSCI crisis market index rose 0.9%.
Money
- The Bloomberg Dollar Spot Index fell 0.6%.
- The euro gained 0.5% to $ 1.1902.
- The British pound climbed 0.5% to $ 1.3897.
- The Japanese yen rose 0.4% to 108.46 per dollar.
Bannan
- Yield on 10-year Finance fell five basis points to 1.54%.
- Germany’s 10-year yield fell three basis points to -0.30%.
Goods
- West Texas Intermediate crude fell 1.6% to $ 64.02 a barrel.
- Gold futures strengthened 2.2% to $ 1,715.30 an ounce.