Investors are back on and betting that stimulus is off and their favorite trade is back in. They, amazon, facebook, are all helping the s p 500 higher today, having held it back earlier this month. Stimulus is not just key to the Value Investor right now. Fed chair jay powell and treasury secretary Steven Mnuchin making the case today for more stimulus. It looks as though the base case is no additional fiscal support. That is why we are suddenly seeing the rotation back into big tech and byebye any value investing. Joe yes. The prospect was already looking dicey for fiscal stimulus. With the new fight in d. C. Over the vacancy on the supreme court, that reduces the odds. But even setting aside the market question, we hear from fed chair powell that to get a robust recovery, we need more stimulus. It was expected by the fed we would have it. Bloomberg economics is projecting that gdp growth will be 5 slower than it would have been in q4 in the absence of stimulus. Again, rotation, value
For the drop. The nasdaq 100 extended its 2020 rally. More now with abigail doolittle, our Bloomberg Markets reporter. L ofe been following al the action. What do you make of stocks rallying at the close . Abigail what an exhausting week. A mixed close on the week between different indexes, making it just as exhausting. All of the volatility tells you what we were talking about yesterday. The uncertainty out there. Theres the nasdaq 100 on the week. You can see the huge ups and downs. This tells you investors do not know what is going on. Between this month and last month, not a lot has changed fundamentally for these companies. Just technical movement, that in august. E had at this point, you do have the on thep investors up 2 nasdaq 100. The best week going back to august. Largely driven by apple having its best up week since august 21. From a also up sharply percentage standpoint. Apple, from a waiting standpoint, as you know, between those two companies in early 20 nasdaqsset 100 o
Third straight week. For more on wall streets move, we are joined by scarlett fu. Lets talk about how this happened. Ett we had quadruple witching. Options tied to indexes and stocks, that led to a pick up in volume. Then you had it falling below the trendline, where the average price over the past two and half months. The theme for today, as it has been for the rest of the week is the lingering disappointment that the fed did not give investors a prize that they have been positioning for. Recent winners, the tech, has been consistent laggards. They are the worst performing sectors this month, down 10 in september. Emily i do want to talk about oracle, tiktok, and this dramatic move by the u. S. Government to expel tiktok and wechat by the app stores. When did you what caught your eye . Scarlet what i found interesting was that even though it trended lower, volume in the stock is off the charts. It was about 26 million shares this week on average. That is up 86 from the first two weeks
Prices,ngs, equity asset prices and risktaking. It is not without its consequences. You have to think about what the cost of building has become. Have soared, adding thousands of dollars to the price of any new home. Tech valuations, volatility. Joe, these record low borrowing costs mean you can also lever up. A. T is why we are seeing m seeing know why we are these pictures when we are talking about market exuberance. Extraordinary morning. We were on our news call and news kept breaking. When we were discussing things. Nvidia buying the semiconductor from softbank. Oracle in some kind of deal for tiktok, it appears. Gilead buying immunomedics. Animal spirits that helps fuel the market on a day like today. Romaine other big biotech deals. Gnc looking like it might have found a deal. If you look at the performance, and that market cap jumping on the day. Oracle, a lot of enthusiasm. Verizon, it kind of makes sense. We had one of the executives on and he kind of made a case to why this
It is showing how much power these businesses have to move the index in one direction or another, outweighing technology. As we look at the valuations 2000, the big underperformer today, relative to the median forward valuation on the s p 500, the ratio looks ugly, we are back down to the lowest we have been. I dont know if that is the denominator of the s p 500 continuing to decline. It could be both of those. It has been a downward trajectory, and we have yet to see it. Calls forwe have got questions to be asked of our guests as well. You are a growth investor. There are queries from viewers whether this can be sustained. We have been talking about the heady heights and valuations. You think the nasdaq 100 may have hit a wall here, or can it pull higher . I think we can continue to go higher for no reason at all other than sentiment. As a fundamentally biased investors, you believe you need to have some cyclical rally that comes through for most of these sectors to come to fruition.