QQQ
Nasdaq set to continue losing streak, Bitcoin fights for support at $50K
- The tech sector looks poised for another down day, fueled by fears
about inflation and rising long-term interest rates. That could lower the
present value of future earnings and undercut arguments for elevated
valuations of high-growth tech stocks. The Nasdaq slumped 2.5% on
Monday, while future contracts linked to the index fell another 1.5%
overnight. In fact, the Nasdaq 100 has dropped 4.2% over the last five
days, the longest consecutive streak of losses since Oct. 19.
- The rout weighed on some of best plays of 2020 as Peloton plunged 10%
on Monday, while DocuSign and Tesla tumbled 8.2% and 8.6%, respectively.
The stay-at-home trade that boosted much of the tech sector may also be
on
the back foot given hopes of a return-to-normal due to a broader vaccine
rollout. That's seeing more more money flow into cyclicals, reflecting
pent-up expectations for a reopening of the economy.
- "Just because long-term rates are ultra-low on an historical basis, we
do not believe that they will have to rise as far as most pundits think
they do before they impact the stock market," Matt Maley, chief market
strategist at Miller Tabak, wrote in a note. Others think the retreat is
a
bit overblown. "Definitely, yields are the big thing," said Randy
Frederick, vice president of trading and derivatives at Schwab Center for
financial research, but "when you are a tad off record highs, inflation
scares or a storm could cause a pullback."
- Elsewhere, Bitcoin retreated below $50,000 after Treasury Secretary
Janet Yellen called the crypto an "extremely inefficient way of
conducting
transactions." She also warned about its use in illicit activity and
sounded the alarm about its impact on the environment (given the levels
of
electricity needed to produce new coins). That would be in contrast to a
sovereign digital currency, for which Yellen signaled the Biden
administration's support, as well as research into the viability of a
digital dollar.
|Today, 5:38 AM|1 Comment
Nasdaq set to continue losing streak, Bitcoin fights for support at $50K
- The tech sector looks poised for another down day, fueled by fears
about inflation and rising long-term interest rates. That could lower the
present value of future earnings and undercut arguments for elevated
valuations of high-growth tech stocks. The Nasdaq slumped 2.5% on
Monday, while future contracts linked to the index fell another 1.5%
overnight. In fact, the Nasdaq 100 has dropped 4.2% over the last five
days, the longest consecutive streak of losses since Oct. 19.
- The rout weighed on some of best plays of 2020 as Peloton plunged 10%
on Monday, while DocuSign and Tesla tumbled 8.2% and 8.6%, respectively.
The stay-at-home trade that boosted much of the tech sector may also be
on
the back foot given hopes of a return-to-normal due to a broader vaccine
rollout. That's seeing more more money flow into cyclicals, reflecting
pent-up expectations for a reopening of the economy.
- "Just because long-term rates are ultra-low on an historical basis, we
do not believe that they will have to rise as far as most pundits think
they do before they impact the stock market," Matt Maley, chief market
strategist at Miller Tabak, wrote in a note. Others think the retreat is
a
bit overblown. "Definitely, yields are the big thing," said Randy
Frederick, vice president of trading and derivatives at Schwab Center for
financial research, but "when you are a tad off record highs, inflation
scares or a storm could cause a pullback."
- Elsewhere, Bitcoin retreated below $50,000 after Treasury Secretary
Janet Yellen called the crypto an "extremely inefficient way of
conducting
transactions." She also warned about its use in illicit activity and
sounded the alarm about its impact on the environment (given the levels
of
electricity needed to produce new coins). That would be in contrast to a
sovereign digital currency, for which Yellen signaled the Biden
administration's support, as well as research into the viability of a
digital dollar.
|Today, 5:38 AM|1 Comment
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