Stocks bounced back as dip buyers emerged to a crisis of a five-day selloff, the longest losing streak since September.
- After plunging 2% earlier Monday, the S&P 500 nearly wiped out its losses, supported by signs that the Omicron Covid-19 might be peaking in New York.
- The Nasdaq 100 rose after the gauge of big corporations such as Apple Inc. and Microsoft Corp. fell nearly 8.5% from its November record-high.
- Investors have been uneasy as the Federal Reserve prepares to hike rates and the resurgent Covid-19 virus dampens economic growth.
- Sylvia Jablonski, chief investment officer for Defiance ETFs, stated that there are some real risks around rake hikes, but major tech companies that are falling have huge cash balance.
- The Fed will likely hike rates four times this year and start its balance-sheet runoff process in July.
A key measure of U.S. inflation is estimated to accelerate further in December, placing extra pressure on the central bank to tighten policy.
DXY down -0.02%, Nasdaq 100 up +0.14%Source: Bloomberg
