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Netflix Stock – S&P 500 Turns Positive, Dow Tops Record 33,000 as Fed Signals No Rush to Hike By Fintech Zoom


© Reuters.

By Yasin Ebrahim

Fintech Zoom – The S&P 500 turned positive and the Dow hit record highs Wednesday, as tech cuts losses after U.S. bond yields slipped following the Federal Reserve’s unchanged rate decision.  

The rose 0.63%, or 207 points, and had hit intraday record of 33,047.58, and the rose 0.39%, and the was up 0.50%, but had been down more than 1%.

The Federal Open Market Committee left its benchmark rate unchanged in the range of 0% to 0.25% and said it would continue its $120 billion monthly bond purchases.

“Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak. Inflation continues to run below 2 percent,” The Fed said in a statement.

The central bank’s policymakers appear in no hurry to hike rates, continuing to back rates to remain near-zero through 2023.

The retreated from 13-month high following the decision, helping tech tech’s to pare some of its losses.

FAANG, which had led the decline in tech earlier in the day, moved off session lows. Amazon.com (NASDAQ:), Facebook (NASDAQ:), Google-parent Alphabet (NASDAQ:) and Netflix (NASDAQ:) were higher while Apple (NASDAQ:) was marginally below the flatline.

Ahead of the Fed decision, some said the recent hit to highly valued growth names from rising yields on inflation jitters are somewhat overdone as rates are normalizing amid an improving economic backdrop.

“The market’s reaction, especially to the highly valued names, and the expectations for inflation moving forward are currently overdone right now,” David Wagner, a portfolio manager at Aptus Capital Advisors, said in an interview with Fintech Zoom.

“This [the rise in bond yields] is just a normalization in rates … if you go back to previous cycles, rates tend to average about 200 basis points off the bottom on the 10-year Treasury yields in the first year and that’s really just what we’re seeing now,” Wagner added.

Crowdstrike Inc (NASDAQ:), was up 4% after reporting “very strong” quarterly results that topped Wall Street expectations on both the top and bottom lines.

Crowdstrike’s very strong Q4 was driven by record “customer wins of 1,480 and record net-net average recurring revenue of $143M that resulted in 75% ARR growth, which beat consensus expectations of 68% and was better than most investors expected,” RBC said as it raised its price target on the stock to $450 from $420.

Industrials were pushed higher by General Electric (NYSE🙂 and Caterpillar (NYSE:), with the latter up more than 3%.

By Yasin Ebrahim

Fintech Zoom – The S&P 500 and Dow hit record highs Wednesday, riding a sharp intraday reversal in tech stocks after bond yields were giving their marching orders as the Federal Reserve it was no hurry to lift rates despite signs of the recovery is taking shape.  

The rose 0.58%, or 190 points, to a closing record of 33,015.397, and the rose 0.30% to close at a record fo 3,974.71. The was up 0.40%, but had been down more than 1% intraday. 

The Federal Open Market Committee left its benchmark rate unchanged in the range of 0% to 0.25% and said it would continue its $120 billion monthly bond purchases.

The central bank’s policymakers appear in no hurry to hike rates, continuing to back rates to remain near-zero through 2023 despite hiking up their outlook on growth. 

The retreated from 13-month high following the decision, helping tech cut losses and turn positive.

FAANG, which had led the decline in tech earlier in the day, ended well above session lows. Amazon.com (NASDAQ:), Facebook (NASDAQ:), Netflix (NASDAQ:) were higher while Apple (NASDAQ:) and Google-parent Alphabet (NASDAQ:) ended below the flatline.

Ahead of the Fed decision, some had said the recent hit to highly valued growth names from rising yields were overdone as rates are normalizing amid an improving economic backdrop.

“The market’s reaction, especially to the highly valued names, and the expectations for inflation moving forward are currently overdone right now,” David Wagner, a portfolio manager at Aptus Capital Advisors, said in an interview with Fintech Zoom.

“This [the rise in bond yields] is just a normalization in rates … if you go back to previous cycles, rates tend to average about 200 basis points off the bottom on the 10-year Treasury yields in the first year and that’s really just what we’re seeing now,” Wagner added.

Cyclical stocks – those that move in tandem with economy – also played a role in the broader market rally. 

Industrials were pushed higher by General Electric (NYSE🙂 and Caterpillar (NYSE:), with the latter up more than 3%.

Energy jumped as lower oil prices as investors digested data showing smaller-than-expected build in U.S. inventories against unexpected climb in product stockpiles like gasoline as the recent lull in refinery activity appears to be on the road to normalizing.

In another sign that the reopening is gathering pace, Walt Disney Company (NYSE🙂 said it will open its flagship Disneyland theme park on Apr. 30. Its shares were up 0.5%.



Netflix Stock – S&P 500 Turns Positive, Dow Tops Record 33,000 as Fed Signals No Rush to Hike By Fintech Zoom

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