The jump in S&P 500 Index was led by utilities and real estate, while technology stocks pushed the Nasdaq 100 Index higher
Stocks in Asia rose Tuesday after optimism about the economic recovery drove U.S. shares to a record. Treasury yields ticked lower.
Shares in China and Hong Kong edged up, while gains in Japan, South Korea and Australia lifted the regional benchmark index. The S&P 500 Index jumped for a fifth consecutive session, led by utilities and real estate, while Apple, Tesla and Facebook pushed the Nasdaq 100 Index higher. Contracts on the U.S. benchmarks were little changed.
Australian 10-year bond yields fell, following the pullback in benchmark 10-year U.S. Treasury rates from last week’s highs. Oil dropped and the dollar wavered. Bitcoin dropped below $54,000, after a weekend rally that took it over $61,000.
The market focus is turning to the Federal Reserve’s statement Wednesday, which will include fresh economic and interest rate projections. Reflation trades will benefit if the central bank maintains a hands-off approach to the recent rise in yields. Bets on a faster economic recovery have already helped push one market gauge of inflation to its highest level since 2008, and a renewed jump in yields could spur the rotation from growth to value stocks.
The stimulus package is a boon for the consumer, investors are expecting the consumer to come out and spend some of that pent up demand, Susan Schmidt, head of U.S. equities at Aviva, said on Bloomberg TV. She sees benefits for both small-cap and even tech stocks from the recovery. Right now in the market we’re overshooting away from tech and sometimes we can go too far, she said.
Looking further ahead, investors are assessing the potential for an infrastructure spending package in the U.S. and the potential impact of higher taxes on corporate profits.
Meanwhile on the virus front, more European countries suspended the use of AstraZeneca’s Covid-19 vaccine on concerns about side effects, delaying the EU’s inoculation campaign.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.