Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed’s timeline for bond tapering.
Investors rushed to safety in big tech today after payroll growth data came in much lower than expected. The result was losses across most sectors and indexes, but enough gains in tech mega-caps for the Nasdaq to end the day higher.
Jobs data in the morning improved the economic outlook even while the pandemic remains relentless. Cyclical and defensive sectors outperformed while growth sectors declined for the day.
Markets rallied in the morning before investors turned defensive and the gains faded, weighed down by big tech stocks that all sold off in the later afternoon. Regardless, most of the market held onto some gain for the day.
Markets closed the month of August moving sideways, but capped another bullish month of gains. The day started with investors swarming defensive sectors, but sentiment flipped, and the sector list scrambled.
Technology stocks rallied today after the Fed expressed a dovish stance toward tapering and interest rate hikes on Friday. Cyclical sectors faded while growth sectors dominated the top of the sector list.
Last week’s fears melted away to optimism. The Nasdaq rallied to a new all-time high and record weekly close. The S&P 500 marked yet another record close, which has become a common occurrence this year. Yet, the bigger story was with small-caps and the Russell 2000, leading the market higher and building some structural support in the market to continue the rally in the final quarter of the year.
A mix of growth and cyclical sectors topped the list this week. Defensive s all sectors declined for the week after topping the sector list last week.
A dovish stance from the Fed’s Jerome Powell at the Jackson Hole Economic Symposium sent stocks higher today. Gains were broadly shared across the market, with small caps leading the way. The S&P 500 and Nasdaq closed at record highs.
Indexes moved lower for the first time in several days as investors became defensive after slightly higher than expected jobless claims data.