Monday (22) the prospect of climbing U.S. bond colonial interest rates and rising Inflation triggered valuation concerns, large technology stocks, chip stocks were badly hit by a wave of selling, that finger, fee and a half fell heavily by more than 2.4%.
In political and economic news, as the U.S. Democratic Party is eager to extend the major unemployment program before the March 14 deadline, the U.S. House of Representatives Budget Committee on Monday voted 19 to 16 to pass the $1.9 trillion stimulus package, laying the groundwork for the House to potentially pass the bill later this week.
U.S. Treasury Secretary Yellen stated Monday that she is willing to consider raising the capital gains tax rate to support the Biden administration’s infrastructure plan. Yellen also reiterated that bitcoin is a highly speculative and inefficient asset and that she supports the introduction of a digital dollar in the United States.
The performance of the four major U.S. stock indices on Monday (22).
The U.S. Dow Jones rose 27.37 points, or 0.09%, to close at 31,521.69.
The S&P 500 index fell 30.21 points, or 0.77%, to close at 3,876.50 points.
The Nasdaq fell 341.42 points, or 2.46%, to close at 13,533.05.
The Philadelphia Semiconductor Index fell 121.45 points, or 3.77%, to close at 3,102.01 points.
Six of the 11 major S&P sectors closed in the black, with energy, financials and real estate leading the way and information technology, non-essential consumer goods and utilities leading the way down. (Photo: finviz) Six of the 11 major S&P sectors closed in the black, with the energy, finance and real estate sectors leading the way and the information technology, non-essential consumer goods and utilities sectors leading the way. (Photo: finviz)
Focus on individual stocks
The top five technology companies fell in tandem. Apple (AAPL-US) fell 2.98%; Facebook (FB-US) fell 0.47%; Alphabet (GOOGL-US) fell 1.65%; Amazon (AMZN-US) fell 2.13%; Microsoft (MSFT-US) fell 2.68%.
Dow Jones components were mixed. disney (DIS-US) rose 4.42%; pioneering heavy industry (CAT-US) rose 3.88%; Nike (NKE-US) fell 3.77%; Dow Chemical (DOW-US) rose 3.46%; American Express (AXP-US) rose 3.22%.
Fee and a half components of a sad. Applied Materials (AMAT-US) down 3.54%; Qualcomm (QCOM-US) down 3.78%; NVIDIA (NVDA-US) down 3.82%; AMD (AMD-US) down 4.70%. Intel (INTC-US) fell 3.65%; Micron (MU-US) plunged 5.15%.
Taiwan ADRs collectively closed in the black. TSMC ADR (TSM-US) fell 2.26%; Sun & Moon ADR (ASX-US) fell 4.45%; UMC ADR (UMC-US) fell 4.53%; Chunghwa Telecom ADR (CHT-US) fell 0.58%.
Individual stock news
Gartner released its latest report on Monday (22), pointing out that the iPhone 12 series helped Apple record double-digit growth in Q4 last year, beating Samsung and Xiaomi to claim the title for the first Time since Q4 2016, Apple (AAPL-US) slipped 2.98% to $126.00 per share on Monday.
tesla (TSLA-US) fell 8.55% to $714.50 per share, dropping below its 50-day moving average for the first time since Nov. 16. The company has stopped taking orders for its cheapest Y model and has not disclosed why. Bitcoin slid more than 10% on Monday after Tesla CEO Musk said last week that the price of bitcoin was too high.
Royal Caribbean Cruises (RCL-US) said bookings for future dates were similar to pre-New Canopy results and that average selling prices were higher than before the outbreak, prompting the company’s shares to rise 9.33% to $86.23 per share.
Keith Gill, the retail side behind GameStop’s rolling short mess, said last week that he bought another 50,000 shares of GameStop, which rose 13.08% to $46.00 per share.
Oracle (ORCL-US), which Barron’s featured over the weekend as potentially the next tech company to transform in the long term after Adobe, Autodesk and Microsoft, rose 5.43% to $64.45 per share on Monday, its best performance in nearly a year.
Economic Data
Chicago Fed’s national activity index was reported at 0.66 in January, after being revised down to 0.41 from 0.52
Wall Street Analysis
David Keller, chief market strategist at StockCharts.com, said there was little new money flowing into the market. It’s like everyone has bought in, and at some point, buyers have run out of steam and the market tends to fall a bit.
Lindsey Bell, chief investment strategist at Ally investment, said investors are a little nervous about how quickly U.S. bond interest rates are rising, and it’s a very quick move in the short term. Wall Street is struggling to cope with what this means from an inflationary perspective? Because of this, there is now some panic in the market.
The rise in U.S. bond interest rates and the ensuing inflationary concerns may force the Federal Reserve to prematurely withdraw policy support, and Wall Street will pay close attention to the Federal Reserve Board Chairman Bowen Tuesday began a series of days of testimony to the Senate and House of Representatives.
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