Written by Yasin Ibrahim
Investing.com – The S&P 500 eased its losses on Friday, as cyclical sectors continued to gain as the pace of reflection trades continued in the wake of continued Treasury yields.
Up 0.05%, up 0.03% or 11 points, Nasdaq slipped 0.19%.
Stocks that keep pace with economic growth, inflation and Treasury yields have kept pace with economic growth, inflation and Treasury yields since investors renewed their bets on reflection trades. For the first time since the beginning of July, the 10-year yield has increased by 1.45%.
Mark Luchini, chief investment strategist at Johnny Montgomery Scott, said, “Reflection trade is being reflected, as 10-year yields break through some initial resistance.” “Small-caps, value stocks, and bank / financial … tend to be driven by a strong correlation with Treasury trends.”
Rising yields – backed by tight Federal Reserve monetary policy expectations, have raised concerns about the economy at a time when Chinese real estate developer Evergrand continues to be concerned. Evergrand was supposed to make $ 84 million in coupon payments on Thursday, but bondholders are still waiting for it.
“Focus on the 10-year treasury … it’s an important indicator of a global economy that is doing well,” Darren Suringa, chief executive of ASYMetric ETF, told Investing.com earlier this week. “In the long run, we need to strengthen global GDP growth to sustain our rally. [in equities].
Strengths and finances gained the most that day, followed by higher ongoing moves in bank stocks.
Lincoln National (NYSE :), Raymond James Financial (NYSE :), Truist Financial Corporation (NYSE 🙂 rose more than 1%
Technically, Facebook (Nasdaq 🙂 has been recovering losses since the beginning of this week, helping the broader technology sector overcome some of its underlying losses.
Years Nasdaq fell 4% after Wells Fargo dropped the company from overweight to equal weight, and the stock lowered its price target from $ 8 to 350 35050, citing expectations of slower revenue growth.
Nike (NYSE 🙂 Reduces its revenue forecast among ongoing supply chain issues that miss revenue in the financial first-quarter, sending the sportswear giant’s shares down 6%.
Still, some on Wall Street believe the recession in Nike is a buying opportunity.
“We hope that supply chain problems will prove to be temporary and recommend that clients use any near-term share price weakness as an opportunity to buy,” Oppenheimer said in a note.
In other news, cryptocurrency-related stocks were hurt by further crackdowns on crypto in China.
The central bank of China considers all digital currency activities illegal and promises to suppress the market.
Robinhood Markets (NASDAQ :), Coinbase (NASDAQ :), Marathon Digital (NASDAQ 🙂 were in red.
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