• Tue. Nov 24th, 2020

Dimancherouge

Technology

What’s Pushing Stocks Higher Thursday

Stocks rose Thursday morning, as investors continued buying last week’s dip in tech stocks.

The S&P 500 rose 0.6% and the tech-heavy Nasdaq rose 1%. The 10-Year Treasury yield rose to 0.71%. Yields rise when prices fall. 

The Nasdaq is up 3% since Tuesday morning as investors are buying the dip after a 10% correction in growth tech stocks. Still, many say it’s very possible that there is a broader rerating of valuations in growth tech stocks like cloud, streaming and e-commerce stocks that could be underway. The at-home environment from the pandemic may have pulled forward massive amounts of demand for these services, leaving investors to question the level of earnings that one can reasonably expect in out-years of the valuation. 

Cyclical value stocks were up as well. They, too, experienced a dip, a more benign one and are also rising a bit, but less so than tech stocks are. Consumer discretionary, manufacturing and banking — as the yield curve expands — all rose a few tenths of a percentage point. 

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