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Date:
16th Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

DOW Retrace After Racing to All-Time Highs, S&P 500 Subdued

The DOW price action remained choppy after racing to newall-time highs, dipping slightly despite the minor expansion of tech stocks that edged higher on falling treasury yields. Meanwhile, the S&P 500 is subdued, contracting as tech stocks appreciate even with pressure from rotational plays. Specifically, the slide of the DOW coincides with the unexpected fall of value stocks in Energy (due to falling oil prices) and Financials. These are sectors that may likely benefit from the trillions of FED’s money, sent to Americans as a cushion to the effects of the Pandemic.


Details:

Coronavirus is a threat across the globe and immediate headwinds are from the action of nine European countries including Austria. Their halting of the inoculation campaigns around concerns of the ASN may slow down efforts, even causing other countries to reconsider the vaccine. While the dent is negative across the board, other value stocks would likely rise, buoyed by interventions from the government and a recovery global economy. Besides, scarcity of chips are a boost for tech stocks that are inching higher as the existing interest rate regime in the United States will likely be extended.


Impact on Indices:

Mixed. The stock market is evidently brushing off over-valuation concerns and prior impact of rising treasury yields, reaping maximum gains from stimulus, chipset shortages, and record low interest rates to remain firmer on an uptrend.


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