S&P 500 tested new highs as tech stocks rallied. Traders bet that big tech earnings reports, which will be released this week, will exceed analyst estimates.
The rally is broad, and all market segments are moving higher. The appetite for risk is growing, so traders ignore rising Treasury yields, which could have put some pressure on the yield-sensitive tech stocks.
From a big picture point of view, traders bet that analysts have pushed their earnings estimates to low levels so companies will easily beat them.
The tech-heavy NASDAQ rallied as leading tech stocks gained strong upside momentum.
Microsoft’s report will be released tomorrow after the market close and will have a significant impact on NASDAQ dynamics. Today, the stock is up by 1.5%.
Dow Jones (US30)
Dow Jones continues to underperform as traders stay focused on buying tech stocks. While S&P 500 and NASDAQ are testing new highs, Dow Jones has settled below January highs.
For a look at all of today’s economic events, check out our economic calendar.