ECONOMIC SILUET: Nasdaq falls nearly 2.5% | Adobe plunges 10% | Leon Cooperman likes the market a little less

Kamis, 16 Desember 2021

Nasdaq falls nearly 2.5% | Adobe plunges 10% | Leon Cooperman likes the market a little less

THU, DEC 16, 2021

EVENING BRIEF

AS OF THU, DEC 16, 2021 • 04:48 ET

DJIA		35897.64
		-0.08%	-29.79

S&P 500		4668.67
		-0.87%	-41.18

NASDAQ		15180.43
		-2.47%	-385.15

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	172.26	-7.04	-3.93%
VZ	52.75	+2.20	+4.35%
MSFT	324.90	-9.75	-2.91%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	172.26	-7.04	-3.93%
T	23.71	+1.54	+6.95%
F	20.35	+0.16	+0.79%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	172.26	-7.04	-3.93%
NVDA	283.87	-20.72	-6.80%
AMD	138.64	-7.86	-5.37%

EDITOR'S NOTE

The post-Federal Reserve decision rally proved short lived on Thursday, as major tech stocks took a beating and dragged down the broad market averages.

The Nasdaq Composite is now down about 2.9% for the week, and it isn't just the result of some stocks with little or no profits getting hit. Even cash-rich Apple has been under pressure.

A more hawkish central bank and tech stocks under pressure usually fit together, but the third piece of that puzzle — higher Treasury yields — hasn't materialized this week. In fact, yields on the 2-year Treasury and 10-year Treasury are down for the week, showing that investors are bidding up bonds even as the Fed signals that it could hike rates three times next year.

To be sure, short-term rates had risen in recent weeks, but still Treasury yields are trading near historic lows even as monetary policy seems likely to get tighter next year.

Lauren Goodwin, an economist and director of portfolio strategy at New York Life Investments, said that investors should be prepared for some wonky moves in Treasuries as the Fed starts to unwind its pandemic-era policies.

"When you match what happened with the Fed and the markets' reactions, interest rate volatility — and not just the level of rates but also the curvature or the steepness of the yield curve — volatility in those two pieces is going to be a hallmark of investing in 2022," Goodwin said. "And that is important not just for fixed income investing but also for equity leadership."

The uncertainty for monetary policy in the next couple of months could mean that smart stock pickers can beat the overall market in the coming months, Goodwin said.