Wall Street Today: A lot of very young people are going to buy the dip in stocks

Moomoo Recap US joined discussion · Jul 20, 2021 08:31

Wall Street Today: A lot of very young people are going to buy the dip in stocks

Stocks to extend drop as virus concerns spur bonds

A global stocks selloff looks set to continue in Asia on Tuesday as the spread of the delta coronavirus variant stokes concerns about the resilience of the economic recovery and bolsters haven assets.

Futures fell about 1% in Japan, Australia and Hong Kong. U.S. contracts edged up after the S&P 500 fell the most in two months, with cyclicals like energy and financial shares suffering in a reversal of the reopening trade. Volatility soared, sending the Cboe Volatlity Index, or VIX, higher.

‘A lot of very young people’ are going to buy the dip in stocks

Someday, the post-pandemic equities rally is going to end. When it does it will take a lot of newly christened stock bulls with it.

“There's a lot of very young people in the accumulation phase,” said Dan Egan, managing director of behavioral finance and investing for robo-adviser Betterment, who added that younger investors in particular have used selloffs as buying opportunities. “If they have any excess cash sitting around, they're going to use it to buy in.”

Chip shortage reaches smartphone makers

The smartphone industry is showing battle scars from the world-wide chip crunch.

Shipments are slowing and customers are seeing their first significant price increases in years. Some companies have had to scale back production and delay new releases. All this has halted what had been a strong start to the year.

Wall Street's new fear is that economic growth has peaked

Investment strategists are starting to consider a new bearish scenario: the economy has already hit its speed limit.

With the ferocious spread of Covid-19's delta variant and central banks already talking about tighter monetary policy to bring inflation under control, there's a sense of worry that financial markets have become too optimistic.

The shift in narrative was evident across assets on Monday. The S&P 500 sank 1.5% and benchmark Treasury yields tumbled to the lowest level since February. In Europe, the Stoxx 600 Index fell 2.3%.

IBM shows strongest revenue growth in three years

$IBM Corp (IBM.US)$ shares rose as much as 4% in extended trading on Monday after the enterprise technology and services provider reported second-quarter earnings that came in stronger than analysts had expected.

Revenue grew 3% year over year in the quarter, according to a , the fastest growth in three years, as the company laps that saw meaningful impact from the coronavirus.

Tencent says it's buying UK video game developer Sumo Group, sending shares flying

$TENCENT (00700.HK)$ said Monday it has agreed to acquire British video game developer Sumo Group for £919 million ($1.26 billion).

The Chinese gaming giant is offering 513 pence a share for Sumo, a 43% premium to the company's Friday closing price. London-listed shares of Sumo skyrocketed more than 40% on news of the deal Monday.

Biden tries to allay fears that rising inflation will undercut US recovery

Joe Biden sought to soothe fears that rising inflation could hurt the US recovery and undermine his $4tn spending plans, saying the administration would remain vigilant about rising prices and that he expected the Federal Reserve to take action if needed.

Global markets shaken by fears over Delta variant

The threat of the Delta coronavirus variant hit global equity markets on Monday, handing European bourses their worst session of the year and sending US stocks down 1.6 per cent.

Source: Bloomberg, WSJ, CNBC, Financial Times, Space

$S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more