What to make of the sell-off in the NASDAQ

The tech-heavy NASDAQ 100 was down again today at the time of writing, bringing its slump since a record intraday high on 29th April to around 6%. Five of the largest “big tech” firms (Amazon, Apple, Microsoft, Google and Facebook), which have a collective weight in the index of more than 40%, have all fallen back to a greater or lesser extent since then.
John Higgins Chief Markets Economist
Continue reading

More from Capital Daily

Capital Daily

Inflation compensation, oil prices and the Omicron variant

News of the “Omicron” variant of the coronavirus may have hit both inflation compensation and oil prices recently, but we suspect the correlation between the two will be weaker over the next couple of years than it has been in the past.

29 November 2021

Capital Daily

How the new coronavirus variant is shaking up markets

It’s impossible to say with certainty how much of a threat the new coronavirus variant emerging in southern Africa poses, but a few aspects of the market reaction so far may shed some light on what to expect over the next few weeks if the news is bad.

26 November 2021

Capital Daily

We think E-Z peripheral spreads will widen further, eventually

While the accounts of the ECB’s October meeting and recent comments by some ECB officials suggest to us that there might not be much scope for euro-zone “peripheral” spreads to increase further in the near term, we still expect them to widen slightly in the next year or two as the ECB gradually normalises monetary policy.

25 November 2021

More from John Higgins

Asset Allocation Update

What’s behind renewed US equity outperformance?

It has become harder to make the case that the stock market in the US will fare worse than those in the rest of the developed world, now that the “rotation” trade has fizzled out. Nonetheless, we still think there are other reasons to expect the relentless outperformance of US equities to end.

7 July 2021

Asset Allocation Update

Would US equities beat Treasuries if inflation surged?

The received wisdom is that inflation is worse for government bonds than for equities. Yet the S&P 500 has fared worse than 10-year Treasuries in a couple of periods of high inflation in the US since the 1960s.

1 July 2021

Capital Daily

Consumer confidence and the US stock market

We do not think that the surge in the Conference Board’s index of consumer confidence in June is a reason to be positive about the outlook for the US stock market.

30 June 2021
↑ Back to top