ECONOMIC SILUET: Nasdaq jumps more than 1% | Powell and Yellen speak Tuesday

Senin, 22 Maret 2021

Nasdaq jumps more than 1% | Powell and Yellen speak Tuesday | $3 trillion recovery plan ahead?

MON, MAR 22, 2021

EVENING BRIEF

AS OF MON, MAR 22, 2021 • 05:07 ET

DJIA		32731.20
		+0.32%	+103.23

S&P 500		3940.59
		+0.70%	+27.49

NASDAQ		13377.54
		+1.23%	+162.31

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	123.39	+3.40	+2.83%
INTC	65.63	+1.87	+2.93%
CSCO	50.30	+1.32	+2.69%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	123.39	+3.40	+2.83%
F	12.85	+0.02	+0.16%
BAC	37.66	-0.87	-2.26%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	123.39	+3.40	+2.83%
AMD	80.30	+1.24	+1.57%
TSLA	670.00	+15.13	+2.31%

EDITOR'S NOTE

Growth and value stocks swapped places on Monday as the 10-year Treasury yield dipped below 1.7%.

The tech-heavy Nasdaq Composite rose 1.2%, while the Dow Jones Industrial Average was up 103 points. The S&P 500 climbed 0.7%.

FAANG stocks soared, with Apple rising 2.8%. Microsoft jumped 2.4%. The tech rally also included Tesla, which advanced 2.3% after Cathie Wood's Ark Invest gave the electric car manufacturer a price target of $3,000 per share by 2025.

Meanwhile, financials caught their breath. Names that slipped today include JPMorgan Chase & Co., which declined nearly 2.7%, and Travelers Cos., which fell 1.1%.

All eyes are on the Federal Reserve, as central bank officials are scheduled to speak tomorrow.

The big event for Tuesday will be Fed Chairman Jerome Powell's appearance before the U.S. House Committee on Financial Services. Treasury Secretary Janet Yellen will also speak before the lawmakers. The discussion will center on the oversight of the Treasury's and Federal Reserve's pandemic response.

The bond market will likely be watching for additional cues on inflation.

A rise in yields isn't necessarily a cause for panic, said John Stoltzfus, chief investment strategist and managing director at Oppenheimer Asset Management.

In a note, he pointed out that the 10-year Treasury yield – which hopped as high as 1.721% last Friday – is up 88.4% from where it stood at the beginning of the year.

"While such a percentage increase in yield is dramatic from a percentage point of view, the likely reality is that the move in yields may suggest that 'things' are indeed 'getting better' and pointing toward re-openings in areas of the U.S. economy that have been shuttered or near shuttered for much of the duration since the rise of the pandemic last year," Stoltzfus wrote.