(DAILY NOTION): Yet Another Muted Day on Wall Street, Where Have the Bulls Gone? Next Mover: Powell's Speech, Nonfarm Payrolls

NASDAQ 100 (as of Mar 4, 2021 at 12.30 p.m.)

Source: Yahoo Finance

SPX 500 (as of Mar 4, 2021 at 12.30 p.m.)

Source: Yahoo Finance

US30 (as of Mar 4, 2021 at 12.30 p.m.)

Source: Yahoo Finance

Wall Street experienced yet another sombre closing as the NAS100 dipped 2.70%, the US30 lost 1.30%, and the SPX500 dropped 0.68%. The less than favourable can be attributed to the weaker than expected ADP Employment Change report and a resurgence of rising U.S. interest rates.

Technology stocks, in particular, such as Apple and Microsoft, experienced the brunt of the hit when they experienced a more than 2% dip. Meanwhile, the financial and industrial sector indexes in the SPX500 achieved intra-day highs, as reported by Bloomberg. 

As per the U.S. Federal Reserve’s (Fed) Beige Book released yesterday, there was modest economic expansion but increasing optimism among business owners about economic recovery, supported by the progress of vaccination.

However, traders would most likely be closely watching the speech from the Fed’s chairman, Jerome Powell, especially against the background of rising yields. Reuters reported that the 10-year U.S. Treasury yields had shot up to 1.477% yesterday, amidst concerns on inflation. Fed Governor Lael Brainard had commented earlier this week that the yield increase could dampen economic activity. Although Powell had previously downplayed the rise in yields, it’s not surprising if many are waiting to see if the chairman would make any comments this time.

Meanwhile, the fate of the $1.9 trillion Biden Stimulus Package hangs in the U.S. Senate. The Democrats are aiming to pass the bill next week, especially as the unemployment benefits are due to expire on March 14, less than a fortnight away.

Aside from that monumental and highly anticipated outcome, the results of weekly initial jobless claims and nonfarm payrolls would also be closely watched as a further gauge of labour recovery in the market.

With a full docket over the next couple of days, the battle still rages on between the bulls and the bears of Wall Street.

FOLLOWME User Sentiment (as of Mar 4, 2021 at 12.35 p.m.)

SPX500

Short – 72.00%

Long – 28.00%

NAS100

Short – 52.22%                

Long – 47.78%

US30

Short – 70.40%

Long – 29.60%