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S&P 500 (SPX) Nasdaq (QQQ) Week Ahead: Fed to markets, we have your back never mind the jobs report!NEWS |
5/7/2021 9:27:42 PM GMT | By Ivan Brian
Equity markets shrug off a shocking jobs report to rally anyway.
No news is good news, bad news is good news as the dip dominates.
Bears have been hibernating and face possible extinction.
Well after a fairly sluggish start to the week things certainly sprang to life on Friday as a brutal employment report was a catalyst for a strong rally! Go figure. Well, the logic is actually not as stupid as it first appears. Equity markets have been fretting over inflation and overheating for the best part of 2021. The US 10-year Treasury yield has had its attempts at nearing two percent and the long duration Nasdaq stocks have had the interest rate sweats. Duration is the sensitivity of an asset, stocks in this case, to interest rates. The majority of tech stocks are high growth, high price/earnin