Daily Chart Report ? Friday, February 26th, 2021
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Today’s Summary
Friday, February 26th, 2021
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average dropped 470 points or 1.50%. The S&P 500 fell 0.47%, while the Nasdaq rose 0.56%. The Russell 2000 closed flat (0.04%).
Sectors: 3 of the 11 sectors closed higher. Technology led, rising 0.53%. Energy lagged, dropping 2.37%.
Commodities: Crude Oil futures moved lower by 2.94% to $61.66 per barrel. Gold tumbled 2.39% to $1,733 per ounce.
Currencies: The US Dollar Index gained 0.88%.
Interest Rates: The 10-year US Treasury yield fell to 1.419%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). The major development this week was the breakout in interest rates. This jump in rates has been a key driver of the rotation we’re seeing in the stock market. In a comment to The Chart Report, Ian said, “There’s been a lot of discussion over whether or not higher yields are ‘good’ or ‘bad’ for the stock market. To me, it’s not so black & white. I think the better question is – which areas of the stock market are higher rates good/bad for? Higher rates are a tailwind for Value-oriented sectors, like Financials and Energy. On the other hand, higher rates can be a headwind for Growth-ier areas that have relied on cheap(er) debt to fund said growth over the last few years. We’re already seeing the impact of this sector rotation at the index level, with the Russell 2000 breaking out relative to the more Growth-heavy Nasdaq.”
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Quote of the Day
“Keep in mind that neither success nor failure is ever final.”
– Roger Babson
Top Links
Three Charts You Need to See – LPL Financial Research
The team at LPL Financial Research shares three noteworthy charts.
The Most Defensive Assets On Earth Get Hit – All Star Charts
JC Parets points out that safe-haven assets like the Japanese Yen, Gold, and the 10-year Treasury Note are all hitting new lows.
What Happened to Gold? – The Irrelevant Investor
Michael Batnick weighs-in on Gold’s lackluster performance.
RIP COVID-19 Portfolio – The Bear Traps Report
Larry McDonald shares his thoughts on the current market environment.
Rates Head Higher – CNBC
In this interview, Chris Verrone of Strategas Research offers his thoughts on the jump in Bond yields and what it means for the equity market.
Top Tweets
