Consumption rebounds; tech stocks down
The second $600 stimulus payment & Federal unemployment benefits have been sent out around mid-January. Consumption is expected to recover as fiscal stimulus takes effect and vaccine distribution picks up pace.
Strong retail sales numbers drive
DXY to $91. 10-year US Treasury yield also touched 1.3%. S&P 500 was pulled down by tech stocks. Gold declined by more than $20 per troy ounce. However, as seen at the end of 2020, investment turning from growth stocks (tech) to value stocks over the short term, on high expectations for a robust economic recovery is quite normal.
Over the long term, big techs still got momentum for high earnings growth. Service recovery suggests rebounds in value stocks, pandemic-hit stocks such as cruise, tourism, cinema. With inventory replenishment underway, industrial stocks, raw material stocks still got momentum, too.
In its January meeting minutes, Fed saw improvement in the economy for the medium and long term, although uncertainties persist and the economy is still “far from where it should be”. Fed says it will maintain easing stance and allow inflation to go over past 2% for future months.
Full article on MacroMicro: en.macromicro.me/quickie
Strong retail sales numbers drive
DXY to $91. 10-year US Treasury yield also touched 1.3%. S&P 500 was pulled down by tech stocks. Gold declined by more than $20 per troy ounce. However, as seen at the end of 2020, investment turning from growth stocks (tech) to value stocks over the short term, on high expectations for a robust economic recovery is quite normal.Over the long term, big techs still got momentum for high earnings growth. Service recovery suggests rebounds in value stocks, pandemic-hit stocks such as cruise, tourism, cinema. With inventory replenishment underway, industrial stocks, raw material stocks still got momentum, too.
In its January meeting minutes, Fed saw improvement in the economy for the medium and long term, although uncertainties persist and the economy is still “far from where it should be”. Fed says it will maintain easing stance and allow inflation to go over past 2% for future months.
Full article on MacroMicro: en.macromicro.me/quickie
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