Nasdaq 100 rallies as Tech Shares get Boost

Investors returned to higher risk assets Tuesday, March 9, driving the technology-heavy Nasdaq 100’s best session since November.

A government bonds selloff hit pause for the first time in the last five sessions with the yield on the 10-year Treasuries lowering on Tuesday when the day before, it reached its highest level in more than a year. The recent highs were triggered by fears that an accelerated rekindling of the economy could cause inflation.

The massive shares buying resulted in large gains helping some stocks recoup some of their recent losses even as high as up to 50%. The overall mood of markets was boosted by speedy vaccination rollouts and expectations that the U.S. $1.9 trillion coronavirus stimulus package will be passed this week. Money managers estimate that many tech companies will continue to reap the benefits of heightened online shopping and online access to media, entertainment, and computing options even during the phasing out of coronavirus lockdowns.

The highly probable likelihood for a super-boosted economic growth has been shaking and shifting the market’s winners and losers for the past two months. Investors have now been pouring back into “neglected” sectors marked as too expensive.

To get a clearer picture of where the U.S. and European economy is headed watch this week’s key events that include the EIA crude oil inventory report due on Wednesday, the U.S. February consumer price index, this week’s U.S. government auctions for 3-,10- and 30- year Treasuries, and the European Central Bank’s monetary policy meeting on Thursday where President Christine Lagarde is expected to do a briefing.

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