Big Tech and Market Reset Bring Optimism To Markets
While many in the market are still psyching others into a recession, the fears are subsiding and the NASDAQ appears to be where the optimists are. Five factors have led to the mini rebound in this market of lowered expectations as watchers await the fed rate decision.:
The NASDAQ Composite closed out the week with its biggest two-day rally since 2008. CPI numbers hinted that inflation was subsiding and hope sprung that the Fed would take a less severe stance. Should the Fed hiking slow down from 75 basis points to 50 basis points, market watchers remain hopeful and some took advantage of the early signals of slowing inflation.
All Eyes On Digital Giant Earnings
With recession headwinds driving lower valuations and earnings uncertainty in high gear, the level of fear remains high. However, in the past week, NASDAQ was up 5.2%. So the big question,will these digital giants hold their gains ahead of earnings season?
Not All Big Tech Companies Are Equally Created
The MATANA stocks continue to do well despite a confluence of crises. MIcrosoft, Apple, Tesla, Alphabet, Nvidia, and Amazon, collectively showed that big tech, digital giants who:
Crypto FOMO Drives Capital Flows Out Of Big Tech (For Now)
Retail investors have taken money out of the equity market and rotated into crypto to catch the wave. With all crypto's now worth more than $2 Trillion in market cap and Bitcoin standing out at $1 trillion, this poses a risk to the US dollar dominance as the reserve currency.
The Q4 2020 big tech earnings season started with Netflix and their great numbers. Apple and Microsoft report on Tuesday their Q4 2020 and all indications seem to show good growth. Tesla's numbers are officially announced on Wednesday.