We Have a Full-Blown Market Correction on Our Hands The good news is that correlated, index-driven selloffs always eventually lead to exceptional stock picking.
Mar 05, 2021 | 06:47 AM EST
The major indices suffered through another day of intense selling on Thursday. The drop was enough to crack some key support areas and pushed the overall market into a technical correction as defined by Investor s Business Daily.
The selling has become increasingly correlated as it has continued and left few stocks untouched. Initially, the corrective action was triggered by a rotation out of technology stocks that had benefited from the work-at-home movement and into the reopen the economy stocks such as hospitality and airlines.
Stocks Snap Two-Day Rally: Bond Yields Increase: Markets Wrap
Bloomberg 1/14/2021 Claire Ballentine and Vildana Hajric
(Bloomberg) U.S. stocks fell for the first time in three days and Treasury yields climbed amid expectations President-elect Joe Biden plans Covid-19 relief of as much as $2 trillion.
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After approaching all-time highs most of Thursday, the S&P 500 turned negative late in the trading session. Technology, communication services and consumer discretionary sectors were the biggest losers, while energy shares rose with oil. Biden last week put the “entire package” at “trillions of dollars,” and many Democrats believe it will be as much as $2 trillion. Biden is expected to announce his economic support plans later in the day. Federal Reserve Chairman Jerome Powell said policy makers won’t raise interest rates unless they see troubling signs of inflation.
Dollar, Treasury Yields Retreat; Stocks Climb: Markets Wrap
Bloomberg 1/13/2021 Adam Haigh
(Bloomberg) The dollar held losses and Treasury yields continued their retreat from a 10-month high as traders weighed the appetite for bonds and the latest comments from Federal Reserve officials on asset purchases. S&P 500 contracts edged higher and European futures were little changed. Asian stocks headed toward another record high.
Ten-year Treasury yields fell to just above 1.10% after solid interest in a government auction on Tuesday. Two Fed officials also pushed back against speculation that asset purchases could be tapered soon. The dollar’s decline aided emerging-market currencies.