Connect with us

Hi, what are you looking for?

Stock

S&P 500 Snaps 3-Day Win Streak as Bulls Hit Pause on ‘Overbought’ Stocks

Stock Markets51 minutes ago (Apr 06, 2021 04:20PM ET)

(C) Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 snapped a three-day win streak Tuesday as technology and energy stocks slipped with investors weighing optimism on the global recovery against the recent rally that some say has pushed stocks into “overbought” territory.

The S&P 500 closed 0.1% lower after hitting a record high of 4,086.10, the Dow Jones Industrial Average fell 0.29%, or 96 points, the Nasdaq Composite was down 0.1%.

“Watch the S&P 500 over the next few days for potential consolidation – that benchmark is now very overbought / extended on the short-term trading charts and is likely to see some profit taking ahead in our opinion,” Janney Montgomery Scott said in a note. Initial support is touted in the 3,975-to-4,000 zone, the firm added.

The gloomy update comes just as energy stocks, which had been battered a day earlier, gave up intraday gains despite oil prices catching a bid on optimism over the global recovery and ongoing signs of reopening progress in the U.S.

The International Monetary Fund lifted its global growth forecast to 6% in 2021, up from its prior forecast of 5.5%, citing the ongoing progress of the vaccine deployment worldwide. The IMF forecast the euro zone to grow 4.4% in 2021. The faster roll out of vaccines in the U.S. continues to spur the reopening process, with California Governor Gavin Newsom saying the state will lift most restrictions by June 15.

Financials also played a role in the broader market malaise as the run up in regional banks paused as U.S. bond yields fell. The U.S. 10-year slipped below 1.7% quote yields after trading in range of 1.67% to 1.72% in recent days.

State Street (NYSE:STT), Bank of New York Mellon (NYSE:BK), PNC Financial Services Group Inc (NYSE:PNC) were lower, with just a week to go until the major Wall Street banks kick off the first quarter earnings season in earnest.

“Although we expect near-term volatility as 1Q earnings start on April 14, reflecting weak loan growth, margin pressure, lower mortgage banking revenues and seasonal factors, we remain positive on the bank group,” Wedbush said.

Technology struggled to hold onto gains, with the Fab 5 mostly in the red even as falling U.S. bond yields supported investor sentiment on longer-duration growth stocks.

Microsoft (NASDAQ:MSFT), Google-parent Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), and Amazon.com (NASDAQ:AMZN) traded lower, while Apple (NASDAQ:AAPL) was higher.

In other news, Tesla (NASDAQ:TSLA) struggled to get going after racking up a 6% gain on Monday, as investors digested a bearish note from Roth Capital.

Roth Capital said Tesla is only worth $150 a share and suggested the electric automaker was a “minor player” in the U.S. and European markets.

S&P 500 Snaps 3-Day Win Streak as Bulls Hit Pause on ‘Overbought’ Stocks

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved