Where were we still going? Let me ask you a question. If you were the market and knew that coronavirus cases were skyrocketing in Florida and other states, would you want to go higher? But if you knew that a vaccine or cure could be found that would make Covid obsolete, and that the Federal Reserve and the United States government would continue to spend until they did, would you want to cut it?
The action of the day was dictated by news from Florida – cases, hospitalizations and cases have increased – and perhaps by the Supreme Court decision to authorize the New York prosecutor to summon taxes of President Donald Trump. “The market essentially turned around when the news was announced that the Supreme Court had cleared the way for a New York attorney to review the president’s tax returns. We thought this could be a problem for Trump’s re-election and the market plunged abruptly, ”writes Stephen Todd of Todd Market Forecast. “I’m trying to stay away from politics on this report, but the stock market wants the president to be re-elected. This is the reason why a Biden presidency would increase both tax rates and regulations. “
Maybe that’s the case, maybe not – the drop in the number of President’s polls hasn’t yet dragged the S&P 500 down a lot – but there’s no doubt that something scared the market. And there is no doubt that everything that scared the market was not enough to get investors to bail out “tech” stocks. The Nasdaq Composite rose 0.5% to a record high, while Facebook (FB), Apple (AAPL), Amazon.com (AMZN), Netflix (NFLX), Microsoft (MSFT) and Alphabet (GOOGL) all finished above.
And yet, some investors fear that the strength of the Nasdaq will die out at some point. “We feel a bit like the ‘boy who cried the wolf’ when we discuss any potential vulnerabilities in the Nasdaq, but again, we can’t help but notice some warning signs,” writes Jonathan Krinsky from Bay Crest Partners. ” [We] enter here into certain parameters and we think that a certain prudence is necessary in matters of technology. as we enter the profit season. “
Now try to convince the market.
Write to Ben levisohn at [email protected]