The Fresh Start of Technology Stocks in 2022
On Tuesday, a drop in technology stocks left the S&P 500 slightly lower on Wall Street. The Dow Jones Industrial Average listed an all-time rise. The S&P 500 was down 0.06%. The Nasdaq composite fell 1.3% after overnight trading. The Dow rose 0.6%. This was partly due to JPMorgan Chase and Caterpillar; They increased by 3.8% and 5.4%, respectively.
Banks had one of the most significant profits. Bond yields increased, pushing 10-year Treasury output to 1.65%. The work on Friday was 1.51%. When investors sell bonds, their prices fall, and returns rise. Shares in the S&P 500 have risen more than 65%. Nevertheless, the decline in technology stocks left the S&P 500 red. Microsoft fell 1.7%. Apple fell 1.3%. Nvidia fell 2.8%. Interest-sensitive sectors have grown. Long-term growth sectors fell.
The S&P 500 fell 3.02 points to 4,793.54. The Nasdaq dropped to 15.622.72, with 210.08 points. The Dow traded up 36.799.65 and totaled 214.59 points. The Russell 2000 Index fell 3.68 points; In total, it fell 0.2% to 2,268.87.
Technology Stocks
The promotions started well in 2022. Dow and S&P 500 set new figures. The mix of economic info and corporate quarterly income reports should give investors some vision into that; What is the impact of the coronavirus pandemic and rising inflation; Both for consumers and companies.
The labor market will be the main focus for investors; Among them is the December report on the work of the Department of Labor, which will be published on Friday. The agency’s monthly vacancy openings and turnover analyses showed that almost 4.5 million Americans left their jobs in November. This is a record number; There is also more evidence that the U.S. job market is recovering strongly from the 2020 coronavirus recession. Experts estimate that the needs are now more or less confident.
OPEC and allied oil-producing countries plan to adhere to their roadmap; To slowly restore production from a reduction in production during a pandemic depth. Including an additional 400,000 barrels per day in February.
Some sectors of the economy are still struggling. This is especially evident in supply chain problems. The increase of the manufacturing business deferred to an 11-month down in December. The central bank plans to accelerate the removal of support for markets and the economy amid rising inflation. He intends to expedite the issuance of bond purchases. This helped keep interest rates low. Investors are watching closely for any signal from the Fed as to when it will eventually raise its benchmark interest rate.
EU and Economy
European stocks have risen. Hence, investors assessed the prospect of global inflation against the COVID-related extended restrictions. The technological route that conquered Asia has had a muted impact on Europe. Markets received another reminder of the pandemic’s constant threat of global growth. Hong Kong has re-imposed social restrictions. Traders are now in a quandary about deepening fears of global change; With a faster tightening of the Federal Reserve System.
It seems the Fed has reached a consensus to reduce faster and grow sooner. However, inflation dynamics will help keep the hike going. It is predicted that the most significant driving force in asset markets will be when Covid fears and inflation start to decline.
The European Capital Indicator has been improved; Travel and energy companies made the most significant gains. The region’s technology index rose 0.2%. China Enterprises Index fell 2%. Tencent Holdings came under pressure; Investment in the technology sector has slowed amid a Beijing regulatory crackdown. Crude oil futures have changed slightly. OPEC and its allies have agreed to resume more suspended production. The direction for the global oil business has improved.
