The market is having itself a week. After the recent sell-off in tech, money is flowing back in, to tech and the market as a whole.
All three major indices were up today. And all three are up big for the week so far.
- The S&P 500 was up 1.04% Thursday and 3.84% for the week.
- The Nasdaq was up 2.52% Thursday and 4.19% for the week.
- The Dow Jones was up 0.58% Thursday and 3.09% for the week.
About a month ago, Feb. 12th, the S&P closed at a record high. It then slid down for the next few weeks. Today, March 11th, it finally closed above its previous high.
Both the S&P and Dow Jones hit intraday highs today and closed at record highs as well. The NASDAQ is still below previous highs from February.
Part of the steam behind this rally is the news regarding a stimulus package. Both the Senate and House approved a $1.9 trillion stimulus package, the third in less than a year. President Biden signed the bill into law this afternoon, as expected.
Economic data released today also helped the rally. Weekly jobless claims rose less than expected last week, totaling 712,000, below the estimate of 725,000.
During the small correction with tech last month, two of the biggest names being hit were Tesla and ARK. Both have had great returns the past year, with some of Cathie Wood’s actively managed ARK ETF’s holding a large amount of Tesla stock.
As Tesla and ARKK fell, some were starting to think it would get really ugly. Yet both have rebounded more than 20% off their monthly lows, but are still not back at their old highs.
Part of the sell-off in stocks the past month can be attributed to inflation fears and rising treasury yield rates. After starting February at 1.09%, the yield for 10-year treasury bills soared to a closing day high of 1.59% on March 8th. It has since cooled down and is trading around 1.54% (at time of publication.)
With one day left, it looks like the week will close positive. Hopefully, Friday will continue the trend and close at new highs as well.