U.S. stocks traded sideways in early Wednesday trading, as traders divested from tech stocks and moved into cyclicals.
Expectations of rising interest rates are making tech stocks less attractive to investors. Tech stocks rely on strong growth for their large valuations and typically benefit from low interest rates.
On the other hand, most investors are still betting that the economy will recover from the pandemic. That’s why many are moving into energy and industrial stocks. Due to that move, the DOW was slightly up, while the tech-heavy Nasdaq index dropped in early trading.
Meanwhile, the yield on the 10-year Treasury rose slightly. The dollar dropped against a basket of major currencies.
|U.S. Dollar Index (DXY):||95.91||-0.35||-0.36%|
|U.S. 1 Year Treasury Bill||0.377%||0.004||0.377%|
|U.S. 5 Year Treasury Note||1.367%||0.002||1.365%|
|U.S. 10 Year Treasury Note||1.653%||0.000||1.653%|
Stocks To Watch
Tesla traded slightly lower after losing some of its weekly gains and dropping 4.18% on Tuesday. On Monday, the stock was up 13.53% after a strong Q4 report.
Beyond Meat surged gained 2% in early trading. The company secured a major deal with fast-food giant KFC. The fast-food chain will serve its plant-based “fried chicken” in several locations in the U.S.
Shares of Pinterest were up nearly 1% after falling 9% on Tuesday. The social media company suffered from a downgrade by an investment firm Guggenheim. The firm cited a dip in Pinterest’s audience.
Commodities To Watch
|WTI Crude Oil||$77.23||0.31%|
|Brent Crude Oil||$80.29||0.36%|
The global crypto market cap is $2.22T, a 0.59% decrease over the last day. Bitcoin’s dominance is currently 39.32%, a decrease of 0.1% over the same period.
|Currency||Symbol||Price||Chg. %||Market Cap.|