The US stocks closed lower on Monday, 22 February 2021, as investors continued to book recent profit amid concerns about the impact of the recent increase in treasury yields and on caution ahead of Congressional testimony by Federal Reserve Chair Jerome Powell.
At the close of trade, the Dow Jones Industrial Average index rose 27.37 points, or 0.09%, to 31,521.69. The S&P500 index fell 30.21 points, or 0.77%, to 3,876.50. The tech-heavy Nasdaq Composite Index dropped 341.41 points, or 2.46%, to 13,533.05.
The sell-off came as the yield on the benchmark ten-year note saw further upside on the day, reaching its highest closing level in a year. The yield on the benchmark 10-year US Treasury note is around 1.37%, its highest in a year, having doubled in the space of six months.
What s not on top? Its share price. The stock has fallen 9% in the past month, lagging the tech sector and broader S&P 500. It is in the penalty box here, near term, Oppenheimer head of technical analysis Ari Wald told CNBC s Trading Nation on Monday.
He said the stock may have been unfairly punished due to a global semiconductor shortage that could squeeze margins. However, he said the company may be better positioned to weather higher costs than its competitors, coming out of the shortage in a stronger position than others. We would be looking for the stock to stabilize at around $120 support. That s where the stock started to break higher in December, and ultimately sets the stage for a resumption of that longer-term uptrend, said Wald.
There was no contest this week. Cryptocurrencies took center stage as the stock market churned, chopped and gave investors a little indigestion. Welcome to the marketâs brave new world.
It appeared that Bitcoin was the answer to whatever ails you. Higher interest rates, the threat of higher inflation, weaker (or stronger) dollar . no problem, just buy Bitcoin. By the end of this week, the crypto coin had chalked up a 15 percent gain and was trading above $52,000. Ethereum, Bitcoinâs younger cousin, was up 10 percent.
None of the financial marketâs usual suspects â stocks, bonds or commodities â could come close to those kinds of gains. Detractors warn that the entire cryptocurrency run-up is just a fad and will end badly. Maybe so, but that didnât stop some of the largest institutions on Wall Street to at least consider investments in cryptocurrencies. And while Bitcoin soared, gold has plummeted.
The US stocks were mixed on Tuesday, 16 February 2021, with the Dow managed to hold onto a modest gain, while the broader Nasdaq and the S&P 500 slid into negative territory, as some traders opted to cash in on the recent strength in the markets.
The Dow Jones Industrial Average hit all-time highs on Tuesday as cyclical sectors gained on the prospect of more fiscal aid to lift the U. S. economy from a coronavirus-driven slump, sharp drop in new coronavirus infections, progress in vaccinations and a stronger-than-expected fourth-quarter earnings season.
At the close of trade, the Dow Jones Industrial Average index advanced 64.35 points, or 0.2%, to 31,522.75. The S&P 500 index fell 2.24 points, or 0.06%, to 3,932.59. The tech-heavy Nasdaq Composite Index dropped 47.98 points, or 0.34%, to 14,047.50.