Dow climbs 290 points to close at another record high, yields hit tech stocks
The Dow Jones Industrial Index closed up at: 32779 a new record high.
The S&P 500 closed up at: 3943 a new record high.
Dow super charged
The Dow jumped to another record high on Friday 12th March 2021, as rising optimism for the a fast economic recovery fuelled the rotation into cyclical stocks. Rising bond yields challenged tech stock valuations again. The massive U.S. $1.9 trillion is encouraging stock movement too.
The Dow has outperformed the Nasdaq for four consecutive weeks. The index has added nearly 800 points in just 3 days – after reaching 32000 in 42 days. More to come next week? Time for 33000?
Fed to meet
The Fed could be a catalyst for bonds, and that could drive growth stocks in week ahead. The Fed meet Tuesday 16th and Wednesday 17th March 2021. Will any action be taken to curb rising yields? Many investors suggest this is unlikely.
Tech under pressure
A 10 year yield rate at 2% could reduce tech stocks by 20% according to some analysts. We have already witnessed a tech pullback of 11% – technically a correction. The index however recovered some of the loses last week.
Let’s see what the Fed has to say as we continue to experience more rotation of stocks in to cyclical sectors.
How much further can the Dow go?