Friday's Market Recap - Dow Plunges In Mixed Session On Inflation Fears.
- Feb 26, 2021
- 2 min read
What is The Premarket Telling Us?
7:15 AM.
US stock futures are mixed at the moment. Dow futures are down 50 points, Nasdaq futures up 26 points, and the S&P futures up 5 points
On The Bond Desk:
The US 10 Year Bond Yield at 1.52%, up 0.13%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.40
Crude Oil:
WTI crude oil futures at $62.23/barrel, up %.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets were a sea of red today. Japan (Nikkei 225) fell 3.99%, Shanghai lost 2.12%, Hong Kong (Hang Seng) dropped 3.64%.
Major European markets also ended lower. German (DAX) lost 0.67%, France CAC 40 down 1.39%, London FTSE 100 sank 2.53%.
Market And Sector Dynamics
Markets opened mixed with the Dow down 15 points, Nasdaq soared 127 points, and the S&P up 16 points. Crude oil was lower at the start at $62.81/barrel, down 1.10%, while the US 10 Year Bond Yield ticked higher at 1.477%.
The Dow hung out below the flat line for the entire session today. Trading was mildly choppy, as markets digested the news of the day. The US House was on the verge of passing the Biden administration's $1.9 billion stimulus plan, while some economists worry about the effects of additional stimulus on, already rising interest rates and the potential for inflation. Investors worry that a rise in interest rates will severely curtail the growth of US corporations both locally and internationally.
At the low of the morning, the Dow was down 475 points, shortly after the open, rebounded off that low shortly after midday, but fell back later, to close at the low of the day.
Eight of the eleven S&P sectors traded lower in today's session, led by Energy, Financials, Utilities, Real Estate, Consumer Staples, Basic Materials, Industrials, and Healthcare. Technology, Consumer Discretionary, and Communication Services ended modestly lower.
Factors Influencing Today's Market
A persistent rise in interest rates remains a fear for markets.
The Biden Administration's $1.9 billion Covid stimulus plan
Asian and European markets all ended lower in their sessions.
US 10 Year Bond closed at 1.407%, down 8.08%.
WTI crude oil price closed at $61.50/barrel, down 3.20%.
This week's Baker Hughes Oil Rig count rose 4 rigs to 309 total.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended the day mixed today with the bears firmly in control. The Dow plunged 469.64 points, Nasdaq gained 72.92 points, and the S&P lost 18.19 points. Total NYSE volume traded, a heavy 6.51billion shares. Declining shares outpaced Advancing shares by 1.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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