Lower consumer confidence and elevated Omicron fears sent stocks lower while Jerome Powell piled on with news of an accelerated bond tapering timeline.
Investors reassessed the risks of the new Omicron variant and determined the impact may be less than initially thought on Friday. Equities rose while bond yields declined. All S&P 500 sectors gained for the day, despite gains not being broadly shared across individual stocks.
Few stocks avoided the sell-off on Friday as investors fled the market on fears of a significant new variant of the Coronavirus. Treasury Yields dropped as money moved from equities to bonds.
Mixed economic data caused a dip in the morning before indexes reversed and mostly closed higher. Trading volume was significantly lower on the day before the Thanksgiving holiday.
Big tech and growth stocks continued their slide on Tuesday as Treasury Yields rise in anticipation of action from the Fed on inflation.
After setting new record highs in two indexes, markets sold off quickly, ending the day with losses after President Biden decided to give Jerome Powell another term as the Fed Chairman.
Nasdaq topped 16,000 for the first time, helped higher by big tech this week. There was caution in the market as investors looked for safe havens and exiting industrials such as travel and energy stocks.
Big tech mega-caps led the Nasdaq and growth sectors higher while seemingly leaving the rest of the market behind. The Dow Jones Industrial and Russell 2000 declined.
Retail sales data helped send growth stocks higher on Tuesday. Earnings reports by big retailers came together with the data, creating an overall surprise on how much consumers are spending despite inflation concerns.
The strengthening US Dollar and rising treasury yields put a damper on Friday’s rally in big tech. Investors moved into defensive and cyclical sectors as Biden put his signature to the Infrastructure Bill on Monday.