Skip to main content

Stocks Erase Almost All of Monday’s Losses as Big Tech Boosts Market

Publish date:
Video Duration:

Stocks rose marginally Monday, after having fallen in the morning. 

The S&P 500 rose 0.15%, with the tech-heavy Nasdaq up 0.7%. This is after all three major U.S. indices fell in the morning, with the S&P 500 falling 1.2%. The 10 year treasury, by midday Monday, rose to 0.72%. 

Outpeforming the indices were Facebook  (FB) - Get Meta Platforms Inc. Report, Apple  (AAPL) - Get Apple Inc. Report, Amazon  (AMZN) - Get Inc. Report, Netflix  (NFLX) - Get Netflix Inc. Report, Google  (GOOGL) - Get Alphabet Inc. Report and Microsoft  (MSFT) - Get Microsoft Corporation Report, all up roughly 1%. The group is one that investors tend to flock into when there is economic uncertainty, as these companies are seen as both quality earnings growers and still quasi-growth stocks that can cut through a recession

In the morning, stocks had fallen partly on the heels of comments from Treasury Secretary Steve Mnuchin, who said that failure to reopen states could cause lasting economic damage. These comments came as investors become increasingly nervous that stimulus, both monetary and fiscal, won’t be enough to enable a sharp recovery, but that the recovery will be more gradual. 

Positively, countries around the world continue to open up, stoking both optimism on a quick recovery but fears that a re-spike in infections is on the way. Also, Disney  (DIS) - Get The Walt Disney Company Report opened parks in China and they’re now selling out, although the stock fell 1.5%. 

Another risk investors are afraid of: reflation. The aggressively stimulus in the U.S. could cause a spike in inflation when the recovery begin to kick in. That could cause interest rats to spike to levels the economy and stocks market cannot handle. 

Watch More of the Latest Videos from TheStreet and Jim Cramer

Related Videos