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US stocks opens higher, pushing S&P 500 over 4,000 level for the first time
By Andreea Papuc and Srinivasan Sivabalan Bloomberg,Updated April 1, 2021, 1 hour ago
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The New York Stock Exchange.Frank Franklin II
(Bloomberg) A revival in technology shares alongside budding optimism about the global recovery pushed the worldâs most important stock index past 4,000 for the first time.
The S&P 500 rallied as much as 0.7 percent to a record as investors weighed President Joe Bidenâs newly unveiled $2.25 trillion stimulus plan ahead of Fridayâs U.S. employment report, which is expected to show the quickest pace of hiring in five months. While it took almost five years for the index to rise from the 2,000 milestone to 3,000 in July 2019, the latest 1,000-point trip took about 21 months.
by Tyler Durden
All eyes are going to be on Tesla this year.
The stock has been smashed over the last few weeks amidst a broader sentiment heat-check for NASDAQ names, high flying technology stocks and, well,
just other speculative garbage.
Over the last month, Tesla has fallen from about $868 to $598, a plunge of about 31%. But it isn t just Tesla investors that are feeling the pain: with the stock having risen in popularity over the last 18 months, Tesla is now tied to numerous ETFs that it winds up pulling lower when it underperforms. In fact, Bloomberg notes that at one point on Friday, every one of the 54 U.S.-based ETFs that have assets under management exceeding $1 billion and more than 1% invested in Tesla had fallen.
And yet, none of it has been enough to rattle the retail investor. Instead, to borrow a Reddit phrase describing bullish gumption, they’ve had diamond hands. Since the market peaked a few weeks ago, retail traders have plowed cash into U.S. stocks at a rate 40% higher than they did in 2020, which was a record year. They’re opting for parts of the market that have suffered the most, doubling down in arguably risky ways with triple-leveraged tech funds and options galore. A year out from the Covid-19 stock crash, with individual traders now making up nearly a quarter of U.S. volume on any given day, battle lines are forming. Some of the favored speculative bets that minted money on the way up electric-vehicle stocks, special purpose acquisition companies and green energy plays to name a few are the same securities that are buckling now as bond yields rise.
By Sarah Ponczek
Apple Inc. has slumped 15% since late January. Tesla Inc. has lost more than a quarter-trillion dollars in market value in three weeks. And more than $1.5 trillion has been wiped off the Nasdaq 100 in less than a month.
And yet, none of it has been enough to rattle the retail investor.
Instead, to borrow a Reddit phrase describing bullish gumption, they’ve had diamond hands. Since the market peaked a few weeks ago, retail traders have plowed cash into U.S. stocks at a rate 40% higher than they did in 2020, which was a record year. They’re opting for parts of the market that have suffered the most, doubling down in arguably risky ways with triple-leveraged tech funds and options galore.