Entrepreneur
Kurra Bewarse Username: Entrepreneur
Post Number: 3338 Registered: 05-2011
Rating: N/A Votes: 0 | Posted on Wednesday, March 03, 2021 - 8:54 pm: | |
Wednesday Market Close Update: 1. Nasdaq had very poor close. Closed below 13000 (low of January) and 50 Day moving average. Is 12000 the next stop or will it hold support? Growth is taking the hit. 2. Long-term interest rates are rising today, driven in part by growth optimism and inflation angst. The 10-yr note yield is up six basis points to 1.48%, riding there on steady selling interest that began overnight and continued past the open for the stock market. That move has generated some reflexive trading action in the stock market, which has featured the underperformance of growth stocks and the outperformance of reopening plays. The resulting connection is that the broader market is mixed. 3.The Federal Reserve has made it clear it's not worried about inflation, but the bond market is taking the other side. Rising interest rates are the bond market's way of saying it's concerned about a stronger-than-expected economic recovery that could spark inflation. 4.With the stock market uptrend under pressure, it's best to keep exposure light. Taking profits in growth stocks makes sense as money rotates into other areas of the market like financial, oil and gas, infrastructure, mining, cyclical and agriculture stocks. |