The Nasdaq bounced 3.69% on Wall Street after fall this Monday more than 2% and enter correction territory, having dropped more than one 10% from all-time highs in February. The main New York indices have gone green with increases of 0.09% in the Dow Jones and 1.42% in the S&P 500.
Meanwhile, the hikes in the Dow Jones occur after setting a new all-time high above 32,100 points in Monday's session, which highlights the large asset turnover from strong hands to more cyclical stocks, associated with the strong economic recovery expected in the coming quarters.
Nasdaq rises are led by Tesla. Those of Elon Musk soar about 20% and have erased the strong falls of the last sessions. In five days they have plummeted more than 21%, drops that have made Musk lose 27.00. millions of dollars.
The House of Representatives votes again this Tuesday stimulus plan promoted by the Biden Administration. The forecast is that it is approved without problems by the Democratic majority and that the president signs it so that it takes effect before March 14, when the current aid to the unemployed expires.
"The reflation-related operations are booming, since investors are rapidly migrating from growth stocks to value stocksleaving their tech favorites beaten down by aggressive sales waves, "says Ipek Ozkardeskaya, an analyst at Swissquote.
Thus, the aggressive portfolio rotation benefits companies linked to consumer staples, to the banks and, to some extent, to energy sector. "And the common denominator behind the mass movement is the rising inflation expectations, which stimulates the expectations of a More aggressive Fed and less cheap liquidity in the market ", adds this expert.
In this scenario, the best refuge for the rising financial costs are the companies offering strong potential for solid earnings tied to economic recovery. "And this is why value stocks are poised to become the new investor favorite, as offer the most sought-after and necessary safety net if financial conditions tighten", concludes Ipek Ozkardeskaya.
By technical analysis, although the long-term trend of the Nasdaq remains bullish, the technology index has shaped a short-term bearish figure on your 'head and shoulders' chart, that "if it is finally fulfilled, it can lead to support area of approximately 11,800 points", says José María Rodríguez, an analyst at Bolsamanía.
In other markets, the West Texas oil up 1%, to $ 65.73, after touching $ 68 on Monday, when confirmed an attack on Saudi Arabian facilities by the Houthi rebels fighting in Yemen. For his part, euro appreciates 0.54% and changes to 1.1907 dollars, while the ounce of gold it advances 1.3% to $ 1,700.