Stocks Dip as Tech Gains Ease

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Stocks dipped Monday as tech stocks paused their recent rally. 

The S&P 500 fell 0.2%, with the tech-heavy Nasdaq down 0.25%. The 10-Year Treasury yield fell to 0.53% from 0.55%. Yields fall when prices rise. It was at 0.66% less tan a month ago. The yield hasn’t been this low since before lockdowns. This signifies investors are buying the safe bond and have little hope for inflation and a speedy economic recovery. 

Not only does the treasury market single bearishness, but Michael Sheldon, Chief Investment Officer at RDM Financial Group told TheStreet bond investors aren’t hesitant to buy treasuries, as the Fed may increase the size of its asset purchases if yields go higher. 

As for tech, the big names have had an impressive run-up since Thursday afternoon, when many of them reported earnings. Earnings blew estimates out of the water. Apple  (AAPL) - Get Report gained 13% into Tuesday from Thursday afternoon. Amazon  (AMZN) - Get Report gained 2% and Facebook  (FB) - Get Report gained 7%. Tuesday, Apple and Facebook dropped about 0.2%, before Apple rose slightly, with Amazon initially falling and then rising a few tenths of percentage point. 

Microsoft  (MSFT) - Get Report fell 1.4% as President Trump said he will sign off on a Microsoft deal to buy TikTok if the U.S. gets a slice of the sale price, putting pressure on the likelihood of a deal. Microsoft, worth more than $1 trillion, wants to buy the Chinese-owned company said to be worth about $40 billion. The Trump administration does not want TikTok operating in the U.S. unless it is American-owned, part of the White House’s agenda to block China from accessing U.S. intellectual property. 

Watch More: Why Jim Cramer Isn't Sure Microsoft Is Right Buyer for TikTok

Other sectors were mixed, with cyclical sectors either up a hair or down a hair. Tepidness in these stocks have been a theme, as earnings have beaten expectations, but paused state reopenings, met with a slowly developing fiscal stimulus bill in Congress is pressuring risk sentiment. 

"Call it a market rally, or a stock market inflation, the global equity markets are poised for more gains on hope that more stimulus would support economies, or at least the stock prices,” Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank wrote in emailed remarks to reporters. 

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