Retail investors with less experience may be struggling to adjust because they’re familiar with the prominent technology companies. However the market often passes through multiyear cycles. Understanding changes in investor sentiment can help traders avoid areas of weakness and focus on new opportunities.
The Federal Reserve’s in a tricky spot this week, committed to dovish monetary policy as the economy roars back from the coronavirus pandemic.
ADP’s private-sector payrolls report on Wednesday and the Labor Department’s non-farms payrolls report on Friday both missed estimates. They were also negative — showing actual job losses — for the first time in at least six months.
The SPDR Utilities ETF (XLU) is up 2.5 percent in the last week, while the broader S&P 500 is down almost 2 percent. Aside from real-estate investment trusts, utilities are the only major sector with a positive return over that time frame.
First, prominent members of the opposing Democratic party are voicing support. That includes both Nancy Pelosi in the House of Representatives and Charles Schumer in the Senate. Wall Street bigwigs Jamie Dimon and Lloyd Blankfein, both Democrats, agree.