MARKET WATCH: Feb. 26, 2021
Big Picture
Technlogy Stocks Under Pressure as Bond Yields Climb
The Nasdaq Composite fell sharply on Monday, as rising bond yields and optimism for a further economic rebound weighed on key technology names, which some investors now see as overvalued. By Monday’s close, the Nasdaq had plunged 341 points, while the Dow added 27 and the S&P shed 30. In Canada, the TSX recorded a modest 32-point gain as the energy and materials sectors rallied. Gold was up roughly 1.5% to a near one-week high, as expectations over U.S. President Biden’s proposed $1.9-trillion stimulus package triggered inflation concerns. Oil also saw healthy gains Monday, reaching $61.49 a barrel, its highest level since January 2020.
It was a wild session on Tuesday as tech stocks bounced back late in the day after Fed Chair Jerome Powell’s assurances that low rates would remain in place for “some time.” Prior to Powell’s comments, the Nasdaq was down as much as 4% before recouping most of its losses. By Tuesday’s close, the Nasdaq and TSX had dropped 68 and 87 points, respectively, while the Dow and S&P recorded minor gains.