SP500
Cyclical stocks rise on $1.9T stimulus hopes, but megacaps slip pushes S&P
down
- The reflation trade returned on hopes of a big round of fiscal cash
from the new administration as the Russell (NYSEARCA:IWM) +2.1%
outperformed.
- But while cyclical sectors rallied, their lower weighting meant a down
day for the S&P (SP500) -0.4% on tech weakness.
- The Dow (DJI) -0.2% and Nasdaq (COMP) -0.1% also closed down.
- President-Elect Joe Biden is expected to announce a COVID relief
package of about $1.9T in a speech this evening, the New York Times
reports. That would include a further $1,400 per person in stimulus via
direct checks, topping up the approved $600 checks.
- The market took a large jump in initial jobless claims as a sign that
a deal for Biden's plan would be easier to come by amid a weak economic
backdrop.
- Interest rates were back on the rise, with the 10-year Treasury yield
up to 1.13%, also helped by Fed chief Jay Powell promising the market
plenty of notice before the FOMC starts to taper its asset purchases.
- In the end, just four of the 11 S&P sectors closed higher. Energy
(NYSEARCA:XLE) was the biggest gainer, while Info Tech (NYSEARCA:XLK)
brought up the rear.
- The megacaps all declined, with Facebook the weakest.
- In IPOs, Petco and Poshmark both saw strong gains.
- And space names rocketed higher on anticipation of ARK Invest's new
actively
managed space exploration ETF.
|Today, 4:06 PM|16 Comments
Cyclical stocks rise on $1.9T stimulus hopes, but megacaps slip pushes S&P
down
- The reflation trade returned on hopes of a big round of fiscal cash
from the new administration as the Russell (NYSEARCA:IWM) +2.1%
outperformed.
- But while cyclical sectors rallied, their lower weighting meant a down
day for the S&P (SP500) -0.4% on tech weakness.
- The Dow (DJI) -0.2% and Nasdaq (COMP) -0.1% also closed down.
- President-Elect Joe Biden is expected to announce a COVID relief
package of about $1.9T in a speech this evening, the New York Times
reports. That would include a further $1,400 per person in stimulus via
direct checks, topping up the approved $600 checks.
- The market took a large jump in initial jobless claims as a sign that
a deal for Biden's plan would be easier to come by amid a weak economic
backdrop.
- Interest rates were back on the rise, with the 10-year Treasury yield
up to 1.13%, also helped by Fed chief Jay Powell promising the market
plenty of notice before the FOMC starts to taper its asset purchases.
- In the end, just four of the 11 S&P sectors closed higher. Energy
(NYSEARCA:XLE) was the biggest gainer, while Info Tech (NYSEARCA:XLK)
brought up the rear.
- The megacaps all declined, with Facebook the weakest.
- In IPOs, Petco and Poshmark both saw strong gains.
- And space names rocketed higher on anticipation of ARK Invest's new
actively
managed space exploration ETF.
|Today, 4:06 PM|16 Comments
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