After weeks of sluggish performances in market indexes — particularly the tech-heavy Nasdaq, which is down more than 10% from record highs set last month — the bulls have once again reclaimed the pre-market. Across the board we’re seeing green: the Dow looks to open up 140 points, the S&P 500 is up 40 points and the Nasdaq trades 300 points higher than it did as of last night’s close.
We’re not seeing new blockbuster economic prints, nor is Q4 earnings season (what’s left of it) particularly compelling. But the big sell-off/rotation into cyclicals from high-valuations previously has at last reached a correction point, which has set traders’ algorithms back into “buy mode.” This is likely an oversimplification; there are plenty of companies expected to bring in much bigger profits as we put the global pandemic behind us, algorithms or not.
Tesla
TSLA
has crossed back over $600 per share, up 7% in just today’s early trading session alone. And Cathie Woods, fresh off big losses to her ARK ETF
ARKK
portfolios (following the biggest trading success of 2021 so far, not counting
GameStop
GME
, sounded a positive note on CNBC yesterday” “The bull market is strengthening (and) broadening out,” which will help ARK investors in the longer term.
Tomorrow it is expected the House will pass and President Biden will sign the $1.9 trillion stimulus/relief bill into law, which will jettison tens of billions of dollars of relief to struggling households, small businesses, unemployment relief and Covid vaccine operations. In short, it will change the economic playing field here in the U.S., and effects are likely to be felt immediately. Markets had been pricing this burgeoning recovery into the market, and looks to be doing so again this morning.
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