The Federal Reserve’s in a tricky spot this week, committed to dovish monetary policy as the economy roars back from the coronavirus pandemic.
The rotation away from large Nasdaq stocks like Tesla has intensified, resulting in the market’s biggest divergence since the dotcom bubble broke a generation ago.
Twitter (TWTR) is up 27 percent since Friday, February 5. That makes it the best-performing member of the S&P 500 for the period. It’s also the biggest weekly gain for Jack Dorsey’s social-media company since February 2015.
The S&P 500 plunged 3.3 percent between Friday, January 22, and Friday, January 29. It was the biggest weekly decline since October, with 85 percent of the index’s members losing value. The selloff also dragged stocks into negative territory on a year-to-date basis.
Apple led a busy week of earnings by crushing estimates as users clambered for new iPhones. Most other companies also had strong results — especially chip makers and industrials.
Netflix and Intel reported strong results this week as earnings season marches toward the major tech stocks.
The DJ Automobile Manufacturers Index ($DJUSAU) has gained 88 percent in the last three months. That’s the biggest gain of more than 150 industry indexes on the TradeStation platform. The Auto Part Index ($DJUSAP) was the second-best performer, up 78 percent. In contrast, the broader S&P 500 has risen 12 percent in the same period.
The S&P 500 slid 1.5 percent between Friday, January 8, and Friday, January 15. It was the index’s sharpest decline since the week ended October 30. The Nasdaq-100 slid 2.3 percent, while the Russell 2000 rallied 1.5 percent. That divergence between big and small has been typical lately as money shifts to value stocks and newer companies.