US stocks experienced another volatile session overnight as a rate hike by the ECB sent bond yields higher, the US 2 years closed back above 4.15% but ongoing rescue packages supported equities i.e. the “Fed Put” is getting busier by the day. The Dow rallied +370 points but the tech-heavy NASDAQ again led the market closing up +2.7% even as bets increased that the Fed would hike rates again next week.
- We continue to look for US stocks to push higher over the coming months regarding decent dips as buying opportunities although SVB et al haven’t helped this view.
- Bears beware, the NASDAQ closed at 4-week highs yesterday.
MM remains bullish on the NASDAQ initially targeting the 13,500 area
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Overnight we saw the broader market rally led by tech stocks but the value sector still retreated further, at this stage we believe the gap between the value & growth indices will be closed primarily by a rally in the likes of tech but we cannot discount the risk of further weakness in the likes of banks/miners as recession fears grow following recent failures in the US banking system.
- We are looking for equities to stabilise over the coming weeks with growth stocks and in particular tech leading the move.
MM believes growth stocks will outperform over the coming weeks/months
