Stocks mounted a dramatic comeback since last week as investors stepped in to buy beaten-up tech shares following a profit-taking earlier in Friday.
The Dow Jones Industrial Average closed up 274.17 points, or 0.80%, at 34,754.93. The S&P 500 finished higher by 1.17% at 4,463.09. The Nasdaq Composite gained 2.05% at 13,893.84. The Russell 2000 index of small-cap shares closed up as well.
Stocks are expected to have a volatile this year with positive notes — usually triggers wild moves as investors move out of old positions and take new ones. In my opinion tech and commodities stocks as a priorities to be focus. By looking at, a few factors such as conflict Russia-Ukraine, rates hike, inflation worries and Covids-19 pandemic. Global market set to be slowdown for recovery but all these commodities and materials all types of electronic equipment will surge higher prices soon.
Previous week, its have been marked one of the best market comebacks in a long time. The session was the first time since the aftermath of the financial crisis in 2008 that the Nasdaq Composite had been down more than 4% on the session and closed up. For the Dow, which was down 3.25% at its low, it was the biggest intraday comeback since the wild trading of March 2020.
S&P 500 Hits 4-week High
United States Stock Market Index (US500) traded at 4,473.50 this Friday March 18th, increasing 51.45 or 1.17 percent since the previous trading session. Looking back, over the last four weeks, US500 gained 3.92 percent. Over the last 12 months, its price rose by 14.32 percent. Looking ahead, we forecast United States Stock Market Index (US500) to be priced at 4,116.02 by the end of this quarter and at 3,862.12 in one year.
Crude Oil is up by 2%
WTI crude futures steadied around $105 per barrel on Friday, after an 8% rally in the previous session as ongoing peace talks between Russia and Ukraine did not yield significant progress, raising fears of further sanctions and prolonged disruption to oil supply. A Kremlin spokesperson denying reports of major progress in peace talks over Ukraine, Putin’s speech against “traitors and scum” at home who helped the West and Biden calling Putin a “war criminal” all added to market jitters about an extended conflict. An IEA warning of a potential supply shortfall due to sanctions against Russian oil also pushed energy prices higher. Meanwhile, the US oil benchmark is still on track to drop for a second straight week, having fallen significantly from a recent high of $130.5 per barrel reached on Mar. 7 as traders continued to assess geopolitical and economic uncertainties.
NASDAQ 100 Hits 4-week High
US Tech 100 Index traded at 14439 this Friday March 18th, increasing 301 or 2.14 percent since the previous trading session. Looking back, over the last four weeks, USNDX gained 4.10 percent. Over the last 12 months, its price rose by 12.22 percent. Looking ahead, we forecast US Tech 100 Index to be priced at 13022 by the end of this quarter and at 12219 in one year.
US Stocks Post Strongest Week Since November 2020
US stocks closed higher on Friday, extending the recent volatile momentum but booking the strongest weekly gains since November 2020, as investors continued to monitor the enduring Russian invasion of Ukraine and become confident in the US economic recovery. Investors digested US President Biden’s call with Chinese counterpart Xi Jinping, while continuing to weigh on news that Russia reportedly avoided defaulting on its USD 117 million sovereign debt. Earlier this week, the Fed announced the start of its tightening cycle and increased its funds rate by 25bps, while signaling six additional hikes this year. The Dow Jones closed the day 270 points higher at 34,755, while the S&P 500 gained 1.1%. Tech stocks led the gains as the Nasdaq jumped 2.1%, with Nvidia climbing more than 5% while Twitter gained 3.9%. The Dow ended the week up 5.4%, while the S&P 500 and the Nasdaq gained 6.2% and 8.2%, respectively.
UK Stocks End Week Higher
The FTSE 100 erased early losses to close 0.3% up at the two-week high of 7,405 on Friday, outperforming its major European peers as investors continued to weigh on the Bank of England’s softer rate hike outlook while monitoring the call between US President Biden and Chinese President Xi Jinping. Still, Russian officials poured cold water on optimism for a ceasefire deal, stating that news of progress in the discussions were false. Miners closed higher in London, led by Anglo American (1.7%), while Polymetal (6.4%) continued its rebound after its selloff in the beginning of March. On the earnings front, pub chain operator JD Wetherspoon rose 1.9% after it reported a net loss in 1st half results but said input prices are expected to rise less than the level of inflation. The index closed the week with a gain of over 3.4%, its steepest increase since November of 2020.
So, I am foresee nothing to worry and panic.
“Supernatural may happen to tech and semi-conductor stocks very soon. I suspect we are going to have a big rally before too much longer”
Despite the concerning falls being seen across the tech sector, there’s no need to panic about it being a long-term trend.
The quality of earnings and fundamentals hasn’t changed for many tech companies, despite the share price falls.
The tech sector has an impressive reputation for delivering returns on equity and strong balance sheets, two things that you want to look out for.