Tag: Nasdaq

Categories
World News

Inventory futures are flat as S&P 500 and Nasdaq sit at a document

Stock futures are flat as S&P 500 and Nasdaq sit at a record

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA on Monday, August 23, 2021.

Michael Nagel | Bloomberg | Getty Images

US stock futures remained stable in overnight trading on Sunday as investors prepared for the final days of trading in August.

Dow futures only rose 11 points. S&P 500 futures were little changed and Nasdaq 100 futures traded around the flatline.

Stocks could stay in a range until the August job report released on Friday. Economists polled by Dow Jones estimate that 750,000 jobs were created in August and the unemployment rate has fallen to 5.2%.

Monday and Tuesday mark the last two trading days in August. So far, the S&P 500 is up 2.6% in August. The Dow Jones Industrial Average and Nasdaq Composite rose 1.5% and 3.1% respectively that month.

The S&P 500 and Nasdaq Composite closed at all-time highs on Friday as investors breathed a sigh of relief after Fed chairman Jerome Powell signaled that bonds could expire this year, but the central bank is in no rush to lock rates raise.

Powell said inflation is solidly around the central bank’s 2% target rate, one of the targets of the Fed’s dual mandate; However, the Fed chairman also explained why he continues to believe that the current rise in inflation is temporary and will eventually decline to target levels.

CNBC Pro Stock Pick and Investment Trends:

Based on statements from other Fed officials, the announcement could be cut back at the Fed’s September 21-22 meeting. Powell said the central bank had “a lot of ground to overcome” in order to achieve its other goal of maximum employment.

Friday’s gains contributed to a strong week for major averages. The Dow closed 0.9% while the S&P 500 added 1.5% and the Nasdaq Composite rose 2.8% last week.

With the Fed’s meeting in Jackson Hole looking back, investors are now focusing on the performance of stocks for the final months of the year. The S&P 500 is up more than 20% in 2021, but the market is also absorbing top policy momentum, top profit accelerations, and top reopening momentum.

Oil futures rose slightly as the commodity reacted only minimally to Hurricane Ida. WTI crude oil futures rose 0.8%.

Cloudera and Zoom Video will report earnings after the bell on Monday.

Categories
World News

Inventory futures drop after S&P 500, Nasdaq notch recent data

Stock futures drop after S&P 500, Nasdaq notch fresh records

People walk by the New York Stock Exchange on April 15, 2021 in New York City.

Spencer Platt | Getty Images

Futures contracts tied to the major U.S. stock indexes fell in early morning trading Thursday after both the S&P 500 and Nasdaq Composite closed at records.

Dow futures dropped 369 points. Contracts tied to the S&P 500 and Nasdaq 100 were both in negative territory.

The moves in futures came after a positive regular session for U.S. markets on Wednesday.

The S&P 500 rose 0.3% to an all-time high of 4,358.13, while the Dow Jones Industrial Average advanced 104.42 points to 34,681.79. The technology-heavy Nasdaq Composite closed just above its own flatline to eke out a record close.

Popular internet and technology stocks again outperformed the broader market on Wednesday as investors bought equity in companies that prioritize growth instead of the reopening names in the energy and retail sectors that proved popular in the first half of the year.

Apple, Microsoft and Amazon — up 1.8%, 0.8% and 0.5% on Wednesday — are each up by double-digits over the last month. While traders have cited several reasons for the shift back into Big Tech, most mention a marked decline in bond yields when discussing the move.

The downshift in the benchmark 10-year Treasury note yield continued Wednesday, when the rate fell to 1.296%, its lowest level since February. Higher yields reduce the value of future earnings relative to current earnings, meaning that the appetite for growth stocks tends to rise when rates fall.

“The 40 basis point decline in the yield on the benchmark 10-year Treasury note since late-March suggests that the global grab for yield remains a potent force, despite the Fed’s desire to let the economy run hot,” Steven Ricchiuto, U.S. chief economist at Mizuho Securities, wrote on Tuesday.

“A stronger currency, increased virus concerns oversea, and the associated demand for long-term Treasury notes and bonds implies reduced inflation expectations and increased risk of importing global deflation,” he added.

Looking ahead to Thursday’s session, investors will pore over the Labor Department’s latest jobless claims figures. The weekly update offers Wall Street regular insight into the pace of layoffs in the U.S. economy, which has been declining amid the Covid-19 vaccine rollout.

Economists expect to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to Dow Jones.

Categories
World News

Tech-led sell-off intensifies with Nasdaq dropping 2%, Dow falls greater than 300 factors

Tech-led sell-off intensifies with Nasdaq dropping 2%, Dow falls more than 300 points

US stocks fell on Wednesday, causing technology stocks to move lower as key inflation data showed higher than expected price pressures.

The Dow Jones Industrial Average fell 330 points on Tuesday after its worst day since February. The S&P 500 lost 1.3% while the tech-heavy Nasdaq Composite was down 2%.

Selling strengthened after the S&P 500 fell below Tuesday’s lows. A level trader was watching this closely due to the intraday rebound a day ago. As soon as the S&P fell below that low about an hour after it started trading, the benchmark fell even further.

Inflation accelerated last month, at its fastest level since 2008, with the consumer price index up 4.2% yoy, compared with the Dow Jones estimate for a 3.6% increase. The monthly profit was 0.8% versus the expected 0.2%.

Excluding volatile food and energy prices, the core CPI rose 3% over the same period in 2020 and 0.9% monthly. The respective estimates were 2.3% and 0.3%.

“The markets are at all their highs, and much of the reopened trading has already been priced in. So there is no question that the oversized inflation rate could bring us back down a little,” said Mike Loewengart, managing director of investment strategy at E -Trade.

“Remember that the Fed has made it clear that inflation hikes will not necessarily deviate from its simple monetary policy, and that further jumps like this could be temporary. So is this a trend? That remains to be seen,” Loewengart said.

Tech stocks that have been under pressure this week and month saw another decline on Wednesday. Alphabet, Microsoft, Facebook, Amazon, and Apple’s shares all fell more than 2%, while chipmakers Nvidia and AMD’s shares were also lower. Tesla slipped 3%.

The strength of bank stocks and energy stocks, which could do well in an inflationary environment, helped support the broader market. JPMorgan was up 1% while Occidental Petroleum was up 6.5%. Chevron was also trading 2% higher.

The tech sector saw a major reversal during the previous session, with the Nasdaq Composite taking a loss north of 2% and ending the day flat. However, the blue chip Dow lost more than 450 points. The S&P 500 was down 0.9% but avoided its second consecutive 1% loss.

The Technology Select Sector SPDR is down nearly 2% this week and 5% this month as investors re-evaluate the group’s high valuations amid rising inflation.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today

Categories
World News

S&P, Nasdaq 100 futures are larger after Apple & Fb beat estimates

S&P, Nasdaq 100 futures are higher after Apple & Facebook beat estimates

US stock index futures were higher early Thursday morning after major averages posted losses the previous day.

Futures contracts linked to the Dow Jones Industrial Average gained 88 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory.

The strong quarterly results from Apple and Facebook have fueled the future. Sales rose 54% for the quarter, with each product category posting double-digit growth, according to Apple. The company also announced it would increase its dividend by 7% and approved share buybacks of $ 90 billion. Facebook revenue increased 48% due to more expensive ads. Apple shares rose more than 2% in after-hours trading, while Facebook rose 6.15%.

The main averages closed in the red during normal trading. The Dow lost 165 points and lost 0.48%. The S&P 500 hit a record high but failed to sustain those gains and closed 0.08% lower. The Nasdaq Composite was down 0.28%.

The Federal Reserve said Wednesday that it would keep interest rates near zero. The S&P slid from its high after Federal Reserve Chairman Jerome Powell said during a press conference following the Federal Open Market Committee’s decision that there was some signs of froth in the market.

“Interest rates are unchanged for now, and despite the improvement in economic data, the cone talk was off the table at today’s Federal Reserve meeting,” said Bethany Payne, portfolio manager at Janus Henderson.

“As vaccination rates accelerate, employment boosts and expansive fiscal policies continue to support household and corporate incomes, investors are now looking for signs of whether the central bank’s safety net may be pulled out sooner than expected,” she added.

Thursday is the busiest day of the winning season. Around 11% of the S&P 500 is to be updated quarterly. Caterpillar, McDonald’s, Comcast, and Merck are among the names on deck before the market opens. Amazon, Gilead Sciences, Twitter, US Steel and Western Digital will publish quarterly results after the market closes.

According to Refinitiv, as of Wednesday morning, 86% of the S&P 500 components reported were above earnings estimates, with earnings 22.7% above expectations. In terms of sales, 77% of companies exceeded expectations.

The economic data released on Thursday will give investors a glimpse of the progress of the economic recovery. The first jobless claim numbers are released, with economists polled by Dow Jones expecting a pressure of 528,000. Pending home sales are also posted.

“The primary market trend remains positive,” said Keith Lerner, chief marketing strategist at Truist. “We expect a more troubled environment, however, as tensions between better economic growth and better earnings prospects versus the potential for higher taxes and rising interest rates as the economy normalizes,” he added.

Thursday marks the 100th day of President Joe Biden’s tenure. On Wednesday evening, he gave his first address to a joint congressional session where he unveiled his previously popular agenda, which included a $ 2 trillion infrastructure plan and a freshly unveiled $ 1.8 trillion plan for families, Includes children and students.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today

Categories
World News

Inventory futures are flat after S&P 500 and Nasdaq shut at information, Tesla shares decline

Stock futures are flat after S&P 500 and Nasdaq close at records, Tesla shares decline

Stock futures were unchanged on Tuesday as investors braced themselves for a large amount of technical gains.

Futures on the Dow Jones Industrial Average lost 30 points. The S&P 500 futures were flat. The Nasdaq 100 futures were also flat.

Tesla’s shares fell 3% in premarket trading even after the electric automaker posted a record $ 438 million profit. Tesla also significantly exceeded Wall Street’s earnings and earnings expectations, fueled by bitcoin sales and regulatory credit. Stocks have struggled this year, more than 18% from their record. Though the stock is still up 360% over the past 12 months.

The winning season for the first quarter starts in full swing on Tuesday. Major tech companies like Alphabet, Microsoft, and AMD are reporting after the bell.

So far, 84% of companies have had a positive earnings surprise, according to FactSet, as around a third of the S&P 500 have reported numbers. However, share movements were relatively subdued after the strong results as the market was at record levels with high valuations.

GameStop’s stock rose more than 8% in premarket trading after the video game retailer said it sold 3.5 million additional shares and raised $ 551 million to accelerate the company’s e-commerce transformation .

The S&P 500 rose to another record high on Monday, while the tech-heavy Nasdaq Composite rose 0.9% to hit its first new record high since February 12.

“Strong action suggests stocks may have even more upside,” said Jeff Buchbinder, equity strategist at LPL Financial. “Although valuations are elevated, they still seem reasonable given interest rates and inflation.”

The Federal Reserve starts its two-day session on Tuesday. The central bank is not expected to take action, but economists expect it to defend its policies to keep inflation running hot.

Apple and Facebook wins will follow after the bell on Wednesday.

Did you like this article?
For exclusive stock selection, investment ideas and CNBC Global Livestream
Sign up for CNBC Pro
Start your free trial now

Categories
World News

Nasdaq trails Dow for fourth straight week, longest streak since 2016

Nasdaq trails Dow for fourth straight week, longest streak since 2016

Chris Hondros | Newsmaker | Getty Images

After a decade of outperformance, investors are finally switching out of technology stocks.

For the fourth straight week, the tech-heavy Nasdaq Composite lagged the Dow Jones Industrial Average. It is the longest such streak since April to May 2016, which was also the only year since 2011 in which the Dow defeated the Nasdaq.

Market experts have been forecasting a technical downturn for years and have consistently been wrong due to the increasing dominance of mega-cap companies such as Apple and Amazon, the frenzy over Tesla and the massive shift in spending to cloud computing.

“It has been frustrating for years to fix this trade,” said Jack Ablin, who oversees $ 12.5 billion as chief investment officer at Cresset.

Ablin said it felt different this time. Beginning in the fourth quarter, his company introduced a new “quality dividend strategy” that moved technology customers to industrial, finance, materials and energy companies. He bet on a democratic course in November, followed by a major stimulus package that would pump money into the economy and lead to inflation and higher interest rates.

President Joe Biden speaks with Vice President Kamala Harris (R) in the Rose Garden of the White House in Washington, DC on March 12, 2021, about America’s bailout plan.

Olivier Douliery | AFP | Getty Images

The 10-year Treasury rose to its highest level in over a year on Friday, hitting 1.642%. Rising interest rates give investors an incentive to shift money towards fixed income securities, while inflation tends to have an overwhelming impact on growth companies as it dampens expectations for future earnings.

Meanwhile, the $ 1.9 trillion coronavirus aid package signed by President Joe Biden Thursday will send $ 1,400 in direct payments to most Americans, expanding child tax credits, and providing rental and utility services .

‘Backlog’

Add to this Biden’s declaration that all adults are eligible for a Covid-19 vaccine by May 1, and the economy is on the brink of a major recovery in 2021.

“There’s a pent-up demand for going out and doing things, going on vacation, going to bars and restaurants,” Ablin said. People will “take all the money on the sidelines and spend it,” he said.

Although Biden and the Democratic Congress are focused on expanding alternatives to green energy, the current prospects for travel and getting back to work benefit traditional oil and gas companies. Within the S&P 500, energy values ​​performed best as a group this year with a plus of 40%. The top performing groups this week were Consumer Discretionary, Real Estate, and Utilities.

The Dow Industrials rose 4.1% over the course of the week to close at a record high of 32,778.64. After three straight weeks of decline, the Nasdaq rose 3.1% to 13,319.87. For the year, the Dow is up 7.1% while the Nasdaq is up 3.4%.

Dow versus Nasdaq in 2021

CNBC

Ablin knows it’s too early for a winning lap. While technology by and large underperforms, there is still a lot of money flowing into even more speculative assets. Bitcoin’s value nearly doubled this year, and a non-fungible token (NFT) by artist Beeple sold for more than $ 69 million in auction through Christie’s on Wednesday.

Ablin said he was just asked about NFTs by a customer Thursday. While he admits he doesn’t have a strong stance on them, he said the market could look very different in the coming months if stimulus recipients choose risky investments instead of traveling and buying consumer goods.

“If it really isn’t spent but plowed into the market, that would pull the rug out of our thesis,” Ablin said. For example, he said, “If they don’t go on vacation, they buy Tesla stock.”

Tesla stock is up 16% this week. But that was after a 30% drop from the previous month.

SEE: NFTs see record prices as artists and Silicon Valley buy in

Categories
World News

Shares rally as tech shares mount comeback, Nasdaq jumps greater than 4%

Stocks rally as tech shares mount comeback, Nasdaq jumps more than 4%

US stocks rose Tuesday after a decline in bond yields led investors into the battered tech sector.

The tech-heavy Nasdaq Composite rose 4.2%, hitting its best day since April 2020. Tesla stock rose 17% after a five-day streak of bad luck, heading for its biggest one-day pop since February 2020. Apple, Facebook and Amazon jumped 4% each, while Microsoft and Netflix both gained at least 3%.

The Dow Jones Industrial Average rose 250 points after hitting an intraday high at the start of the session. The S&P 500 gained 2%.

Technology stocks bounced back from heavy losses as bond yields stabilized. The 10-year government bond yield fell more than 4 basis points to 1.54%. The key interest rate stood at 1.62% on Monday.

“After lagging heavily over the past few weeks, growth / momentum stocks are exploding higher as investors get a little more comfortable with interest rates and buy what was once the most popular sector,” said Adam Crisafulli, founder of Vital Knowledge. in a note.

The Nasdaq lost 2.4% in the previous session, closing more than 10% below its February 12 high and falling into correction territory. Lately, high-growth names have come under pressure as rising interest rates make their future earnings less valuable today, making it difficult to justify the stocks’ high valuations.

Many popular technology stocks have fallen double digits over the past month on fear of interest rates. Apple is down 10% in the last month while Tesla is down more than 20%. Pandemic betting Zoom Video and Peloton fell more than 20% over the same period.

“Many of these technology stocks are oversold in the short term, so it’s no great surprise that they are seeing a good rebound,” said Matt Maley, chief marketing strategist at Miller Tabak. “The question will be whether this jump is a strong one … or a ‘dead cat blow’ that doesn’t last long at all.”

Widely pursued investor Cathie Wood of Ark Investment Management told CNBC on Monday that the recent tech sell-off opened “great opportunities” for her to buy the game-only names in her funds, which focus on disruptive tech stocks.

Wood’s flagship fund Ark Innovation (ARKK) rose 10% on Tuesday, marking the best day ever.

Meanwhile, the rally took a breather as games and cyclical stocks reopened on Tuesday. Energy was the only red sector to decline 0.7% after rising 9% this month alone. Financial stocks and industrial stocks also underperformed.

The Senate’s approval of the $ 1.9 trillion Economic Facilitation and Incentive Act had investors continue to turn to these areas of the market looking for an economic recovery. House Democrats want to pass the bill on Wednesday so President Joe Biden can sign it by the weekend.

Categories
World News

Robinhood chooses the Nasdaq for its IPO, sources say

Robinhood chooses the Nasdaq for its IPO, sources say

Avishek Das | LightRocket | Getty Images

Robinhood has selected the Nasdaq as the source for its eventual IPO, according to sources familiar with the matter.

The company has not yet officially applied for listing.

The stock trading app has lowered the market entry barrier for millions of retail investors, paving the way for one of the biggest public debuts of the year.

It is unclear whether Robinhood chose a direct listing or a traditional IPO. Regardless of method, Robinhood will file an S-1 with the Securities and Exchange Commission. It usually takes a month or two for companies to debut once they file with the SEC.

Goldman Sachs advises on Robinhood’s IPO.

Robinhood – whose long-standing mission is to “democratize” investment – is seen as the main gateway for young investors to gain access to the markets.

After record growth during the Covid-19 pandemic, the millennial stock trading app found itself in the middle of a firestorm in January amid brief pressure on GameStop, fueled in part by Reddit-fueled retail investors. Robinhood’s brand appears to be intact, however, as pre-IPO stock bids speak of the GameStop mania.

According to JMP Securities estimates, Robinhood gained 3 million users in January alone.

New York-based D1 Partners, Sequoia, Kleiner Perkins, and Google’s venture capital arm GV are among Robinhood’s largest venture capital investors.

The Nasdaq and Robinhood declined to comment.

Categories
World News

Nasdaq rebounds from worst sell-off since October, Dow falls 100 factors

Dow futures jump 200 points on better-than-expected Goldman earnings, stimulus hopes

Traders on the floor of the New York Stock Exchange.

Source: The New York Stock Exchange

Tech stocks lifted the broader market higher in volatile trading on Friday, rebounding from heavy losses after a key inflation indicator showed tame price pressures.

The Nasdaq Composite rose 1.7% as Apple, Facebook and Microsoft each gained more than 2%. The tech-heavy benchmark swung wildly on Friday, even falling 0.7% at one point. The S&P 500 gained 0.6% while the Dow Jones Industrial Average fell 150 points, led by Salesforce and Chevron.

Some investors consoled themselves with the consumer spending price index, which pointed to subdued inflation in January. The PCE index, which the Federal Reserve is closely monitoring, rose 0.3% for the month, slightly above expectations of 0.2%. However, it rose only 1.5% year-on-year and was in line with Dow Jones estimates.

Government bond yields initially fell after the inflation data was released, but later bounced back from their lows. The 10-year yield was last trading near 1.5% after rising above 1.6% at one point on Thursday. The 10-year interest rate has increased more than 50 basis points since the start of the year, a sharp increase for a bond rate that is used as a benchmark for mortgage rates and auto loans.

“When the market starts to believe that the Fed has somehow lost control of the bond market, all of this tantrum idea will crop up,” Art Cashin, director of floor operations at UBS, said on CNBC’s “Squawk” on the street on Friday . “

Falling interest rates alarmed stock investors, bringing the Nasdaq Composite to its worst session since October the day before. The Dow fell 559 points and pulled back from a record high. The S&P 500 lost 2.5% while the tech-heavy Nasdaq lost 3.5%.

Economists and investment managers say the bond market will respond to positive economic conditions as vaccines roll out and GDP projections improve, which should benefit corporate earnings. The move could also signal inflation faster than expected.

The sheer pace of the surge has also dampened investor appetites for highly valued areas of the market. Higher interest rates reduce the value of future cash flows, so they can compress stock valuations. With Thursday’s 10-year yield spike, it was also above the S&P 500’s dividend yield, meaning stocks – considered riskier assets – have lost that fixed-payment premium over bonds.

“Until recently, market participants could digest the uptrend in long-term interest rates, but it appears that the next hike in interest rates will be a bigger bite,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. said in an email.

“Given where real returns have been, they were just too low given growth expectations, and it is likely that long-term real returns will continue to rise as economic data improves,” he added.

Popular big tech stocks like Alphabet, Facebook and Tesla, all of which started the year strong, fell 3.2%, 3.6% and 8%, respectively, on Thursday. Apple, one of the largest, cash-intensive companies in the world, saw its share price fall more than 15% last month.

Instead of technology, where companies borrow more on average, investors are investing money in so-called reopening businesses and buying stocks of companies that would benefit most from the introduction of the vaccine and a return to regular travel and hospitality trends.

Energy has increased 6.8% this week alone. This is by far the biggest winner as consumers around the world are expected to be driving and flying soon as they did before the Covid-19 pandemic. Industry and finance are the only other sectors in the Green Week so far.

The S&P 500 is down 2% so far this week while the Nasdaq is down 5%. The Dow Industrials is down 0.3%.

– CNBC’s Kevin Stankiewicz contributed to the coverage.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
World News

Nasdaq falls greater than 1% as tech sell-off continues, Dow trades off low on Powell

Nasdaq falls more than 1% as tech sell-off continues, Dow trades off low on Powell

Tech stocks led the broader market down for a second day on Tuesday, amid higher interest rates and a rotation in stocks more linked to the economic rebound.

The Nasdaq Composite fell 1.4% for the first time since November 3, falling below its 50-day moving average, a key technical indicator. The S&P 500 fell 0.4% while the Dow Jones Industrial Average fell 70 points to its lows after 360 points.

Stocks rebounded from their lows after Federal Reserve Chairman Jerome Powell told Congress in his testimony that inflation is still “weak” and the economic outlook is still “highly uncertain”, which is what concerns a change in policy by the central bank.

“The economy is far from our employment and inflation targets, and it will likely take some time to make significant further progress,” said the Fed chief in prepared remarks for the Senate Banking Committee.

Fears of inflation have risen in recent weeks amid a sharp rise in bond yields as policy makers debated another round of economic relief. Investors fear that a price hike due to government incentives could force the central bank to raise short-term borrowing costs.

“The Fed is focused on employment and appears very poised to absorb higher inflation and excesses in the financial market, creating financial instability in hopes of getting there,” said Peter Boockvar, chief investment officer of the Bleakley Advisory Group , in a note. “But as can be seen at the long end of the yield curve, the markets have a say in this too and speak loudly. Hopefully the Fed officials will listen at some point.”

Tech stocks, the most vulnerable to higher interest rates, have sold out in the past few days. Investors also rushed to book profits on these pandemic winners, whose valuations have reached historically high levels.

Tesla was trading 4% lower after previously falling 13% after falling 9% in the previous session. Apple lost 1.7% after falling 3% on Monday. The iPhone maker’s stock is down about 11% over the past month.

Small caps also came under pressure as the Russell 2000 fell 1.9% on Tuesday and rose 6.5% in February. Those shabby value shares outpaced the S&P 500 in 2021 amid optimism about the vaccine launch and economic reopening.

“The sell-off of tech darlings and popular small caps could be interpreted as the beginning of market volatility,” said Chris Larkin, chief executive officer for trading and investing products at E-Trade. “It’s not to say that stocks have run their course, it’s more that cyclical sectors like energy and finance are more attractive as technology takes a back seat.”

The 10-year government bond yield, which has been rising steadily since early 2021, remained steady at 1.36% on Tuesday. So far this month the key rate has risen by an impressive 28 basis points. The 30-year yield hit a year-high of 2.2% on Monday. One basis point is 0.01%.

The losses incurred during Tuesday’s session contributed to growing divergence between key areas of the market. The tech-heavy Nasdaq Composite, which fell 2.5% on Monday, is down about 4% this week.

The Dow, which comprises a larger proportion of cyclical stocks, is down a far more modest 0.1% since Friday’s close as investors pick up names they believe will benefit from an economic rebound. Energy and finance – two of the best performing sectors this year – again supported the market on Tuesday.

Jonathan Golub, chief strategist at Credit Suisse in the US, believes cyclical stocks will take the market to new highs as the year progresses, driven by the upside in earnings and optimism about the economic reopening.

“Rising interest rates – a benefit to finance – and copper and oil prices – a boon to industry, energy and materials – further reinforce this favorable backdrop,” Golub said in a statement on Tuesday.

Credit Suisse increased its S&P 500 year-end target from 4,200 to 4,300. The new forecast corresponds to an 11.5% rally.