FINSUM + Magnifi: The Nasdaq Correction May Be Signaling a Bear Market

(February 2021)

The market had eagerly awaited Fed Testimony before Congress on Tuesday as investors wanted clarity on rising inflation concerns, but it appears investors didn’t take the ‘sit and wait’ approach. A bearish surge in overnight trading and on open primarily in tech stocks weighed the market down. Inflation concerns are driving this slump as many tech companies are dependent on cash flows. Tech concentrated index NASDAQ already had a hard Monday down 2.5% but fell off another 1.8% on Tuesday. What would normally be a bullish sign for markets appears very bearish as Powell tells congress inflation is soft and the Fed remains on track to hit its target. Treasury yields have been on the rise as the markets are in lockstep with the Fed, hitting an annual high of 1.39%. Powell says that it will move patiently and slowly telegraphing its moves amid inflation pressures.

(New York)


FINSUM + Magnifi: Inflation hawks have been crying wolf for nearly a decade, but this time they might be right. The bond market is showing the early signals of inflation and further bearish behavior in the tech sector and cash-dependent industries may follow. That said, tech companies’ underlying businesses look strong, which means earnings releases might combat some of this macro bearishness. 



New call-to-action

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of February 2021, 250,000+ users with $475+ Billion in Assets Under Influence, has used Magnifi over 1,200,000 times. Try it for yourself today.

 

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]

 

Magnifi in Action: Discover "Munis"

Click on any fund in the chart below to dig deeper.

 

 

 

Related Posts

FINSUM + Magnifi: Pay Attention to This Big Bear Market Warning Sign

April 8, 2021

The stock market has been on one of the most historic recoveries in market...

FINSUM + Magnifi: Why the Nasdaq is Really Dropping

(March 2021)

The ten-year treasury yield hit one year high at 1.6% on Friday, just after...

FINSUM + Magnifi: This Volatility is the Second Leg of a Bear Market say Analysts

(September 2020)

The volatility and losses over the last four weeks have been more severe than...