Connect with us

Hi, what are you looking for?

Stock

S&P Flat as Tech Gives Up Some Gains, Financials Slip

Stock Markets16 minutes ago (Jun 09, 2021 04:13PM ET)

(C) Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 fell slightly Wednesday as tech lost some of its gains, while financials were dragged lower by falling rates as investors appear to be buying into the Federal Reserve’s view that inflation is transitory ahead of Thursday’s consumer price report.

The S&P 500 fell 0.2%, the Dow Jones Industrial Average was down 0.4%, or 152 points, and the Nasdaq Composite was down 0.1%.

Easing worries that runaway inflation is on the horizon prompted investors to scale back their bearish bets on Treasuries, forcing yields, which trade inversely to price, to move to levels not seen in a month.

The short-covering in Treasuries comes just a day ahead of the consumer inflation data, with economists expecting headline inflation at the fastest pace since 2008. But the sluggish action in bond yields suggests the market is betting that the Federal Reserve’s inflation narrative could be the right call.

” [T]he bond market is signaling this [inflation] is all very transitory and has been quite supportive of what Fed chairman Jerome Powell, and most of the other fed governors have said,” Rhys Williams (NYSE:WMB), chief investment officer of the Opportunistic All Cap Equity Strategy at Spouting Rock Asset Management, said in an interview with Investing.com on Wednesday.

“With the 10-year Treasury yield at about 1.50% … clearly the market doesn’t seem very nervous about this print as much as maybe individual portfolio managers are,” Williams added.

Tech has found its footing, attracting bids from investors who had ditched the sector when fears on valuation ran deep following a jump in the Treasury yields early this year.

Apple (NASDAQ:AAPL), Google-parent Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB) were mostly higher.

These cohort of megacap growth stocks, which have lagged the broader market for months, now offer “a very good risk to reward because the chances of losing all your money in these names in the event of a disastrous outcome for your portfolio is low,” according to Williams.

Falling yields, however, were not welcomed in financials as regional and large bank stocks came under pressure amid concerns about lower net interest margin.

Charles Schwab (NYSE:SCHW) was down 3%, JPMorgan Chase & Co (NYSE:JPM) fell 1% and Citizens Financial Group Inc (NYSE:CFG) slipped 2%.

Energy stocks ended above the flatline even as oil prices dropped after U.S. weekly crude inventories fell more than expected amid optimism that energy demand is set to pick up over the summer months as international travel activity heats up.

In industrials, United Parcel Service (NYSE:UPS) slipped 4% after issuing guidance that failed to live up to market expectations.

There was shake up in the meme trade, with Clean Energy Fuels (NASDAQ:CLNE), and Workhorse Group (NASDAQ:WKHS) talked up on Reddit’s WallStreetBets. Clover Health Investments (NASDAQ:CLOV) pared some of its gains from a surge a day earlier.

AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), BlackBerry (NYSE:BB), and Bed Bath & Beyond (NASDAQ:BBBY) traded mixed.

S&P Flat as Tech Gives Up Some Gains, Financials Slip

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

World News

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered...

World News

George Soros and Bill Gates are part of a consortium acquiring a British developer of rapid-testing technology, including for Covid-19 and tropical diseases,...

Tech

If you parked your car in one of the thousands of parking spots across Calgary, there’s a good chance you paid the Calgary Parking...

World News

Every gambler has their own way. Some people like playing poker, whereas others enjoy the excitement of rotating the wheel. Some people prefer...

Disclaimer: Yourmorningvoice.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. Copyright © 2021 Your Morning Voice. All Rights Reserved