Wall Street Today: Stock markets cruise to records in first half, but investors grow uneasy

Moomoo Recap US joined discussion · Jul 1, 2021 08:25

Wall Street Today: Stock markets cruise to records in first half, but investors grow uneasy

Stocks closed out the first half of the year with double-digit percentage gains, powered by an economic recovery that many investors believe is still gathering pace.

The $Dow Jones Industrial Average (.DJI.US)$ rose 210.22 points, or 0.61%. The $S&P 500 Index (.SPX.US)$ rose 0.13% and closed at a record 4,297.50. The $Nasdaq Composite Index (.IXIC.US)$ dropped 0.17% and closed at 14,503.95.

Fed Reverse repo use climbs to almost $1 trillion at quarter end

Demand for a key Federal Reserve facility used to help control short-term rates surged to a record high of close to $1 trillion, accommodating a barrage of cash in search of a home that’s only set to grow.

Stock markets cruise to records in first half, but investors grow uneasy

Stocks closed out the first half of the year with double-digit percentage gains, powered by an economic recovery that many investors believe is still gathering pace.

So even as stocks march upward, and volatility is subdued, there is growing anxiety that future gains will be harder won.

Ford to idle or curb output at more plants because of chip shortage

$Ford Motor (F.US)$ said the computer-chip shortage will force it to cut output across more than a half-dozen U.S. factories in July, a sign that the supply-chain troubles could take longer to ease than auto-industry executives previously believed.

This market trend suggests a weak summer, but Ally Invest has a message for investors: Don't get discouraged

Despite an upbeat market forecast for the year's second half, Ally Invest's Lindsey Bell has a warning for the next few months.

Bell finds the third quarter is usually the weakest time of the year, up 0.7% on average since 1950. However, she suggests it's no reason to get discouraged.

"The peak in the stock market doesn't typically happen when the Fed begins its rate-tightening process," she said. "You shouldn't be too worried about the Fed tightening anytime soon. But they will be coming probably next year or the year after."

Micron sales forecast meets estimates

$Micron Technology (MU.US)$ , the largest U.S. maker of memory chips, gave a revenue forecast for the current quarter that was in line with analyst's projections, indicating solid demand for semiconductors that store data in computers and phones.

Investors still diving into US equities with valuations at record highs

Money is pouring into the US stock market at the fastest pace since 2015, even as valuations sit close to all-time highs and investors worry that higher inflation could push the US Federal Reserve to tighten monetary policy.

Goldman Sachs expects households and corporations to buy $500bn of US equities by the end of the year.

South-east Asia's tech boom fuels record mergers and acquisitions

Technology sector dealmaking in south-east Asia hit $19bn in the first six months of 2021, the strongest-ever start to a year, fuelled by acquisitions by leading groups Grab, Gojek and Sea. Mergers and acquisitions rose 114 per cent compared with 2020, according to data from Dealogic, reflecting investor enthusiasm for one of the world's fastest-growing internet markets.