Tech props up U.S. stocks while Treasury curve flattens
BNN Bloomberg
Technology stocks climbed, beating companies that stand to benefit the most from an economic reopening.
Technology stocks climbed, beating companies that stand to benefit the most from an economic reopening.
The tech-heavy Nasdaq 100 outperformed major benchmarks, while energy, financial and industrial shares fell. The S&P 500 fluctuated amid mounting concern that another wave of the pandemic in Europe could spur more lockdowns. The Treasury curve flattened after two members of the Federal Reserve’s board said the central bank may need to consider speeding up the reduction of its bond-buying program amid strong economic growth and rising inflation.
While stocks are hovering near records, propped up by robust earnings, a virus resurgence could stall the economic recovery. Austria became the first western European country to impose widespread restrictions. Parts of Germany also closed non-essential businesses, while the Netherlands has already ordered shops and bars to close early.
“It’s been another week of stocks defying gravity in a tense environment,” said Callie Cox, senior investment strategist at Ally Invest. “The road hasn’t been easy, though. Investors are still digesting the risk of runaway inflation, along with a COVID spike and a new wave of restrictions in Europe.”
President Joe Biden’s signature plan to expand the social safety net, address climate change and rewrite tax policies passed the House Friday morning as Speaker Nancy Pelosi united fractious Democrats to send the legislation to the Senate, where its fate remains uncertain.
