“Rising interest rates means less attractive tech stocks” was today’s market situation

Updated time: 20 Jan, 2022, 13:46 (UTC+04:00)

“Rising interest rates means less attractive tech stocks” was today’s market situation. Selloff came one day after the Fed doubled the amount of monthly tapering, pushing investors away from Big tech and towards cyclical sectors. More fears were seen coming from the central banks’ different approaches to combat surging prices, like the BoE’s surprise hike and ECB’s cautious taper.

Although 8/11 major S&P 500 sectors gained, the index overall still slipped 0.9%. Dow Jones was down 0.1% and Nasdaq dropped the most, 2.5%.

Stocks:

Big tech ended in the red, led by Apple and Adobe Systems.

Financials climbed as investors bet on the boost of the U.S Treasury yields following rate hikes.

Cyclicals, healthcare rose.

Currencies:

The dollar was still under pressure following the more hawkish-than-expected BoE and ECB. The sterling and euro benefited, leading the dollar index to a 0.61% slide started the Asian session; however, it will not extend beyond that low. Eyes were now on the BoJ for its policy decision later today.

Crypto:

Coins plunged today. Crypto analysts predicted that the market would be choppy after Powell said in his meeting with FOMC that interest rates were still in low range, waning the investors’ sentiment. 2021 could end in a bearish note and next year’s rate hike may leave crypto in further volatility.

Rising interest rates means less attractive tech stocks” was today’s market situation

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