Investing.com | Dec 10, 2020 07:24
Contracts on the Dow, S&P and Russell 2000 were up Thursday while NASDAQ futures were headed lower, suggesting further declines when Wall Street opens. The dip comes after the tech benchmark posted its biggest selloff in a month on Wednesday during US trade, falling 1.94%.
The tech sector is loosing capital to value stocks as investors continue to rotate into companies that will benefit from a post-pandemic economic recovery.
Oil recovered and gold fell slightly.
Although the US Federal Trade Commission launched an antitrust lawsuit against Facebook (NASDAQ:FB) on Wednesday, causing its shares to drop 1.93%, it is the cyclical rotation out of tech that drove the NASDAQ 100's slump. Facebook's weighting on the index is only 4.163%.
The antitrust lawsuit characterizes}} the giant social media platform as a monopoly and threatens to dismantle the Facebook empire. It alleges that the purchase of Instagram and WhatsApp has enabled it to put smaller competitors out of business.
The NQ chart reveals multiple bearish indicators.
The contract is extending Wednesday's decline when it fell below its uptrend line since the November low. The RSI, too, crossed below its uptrend line. The MACD’s long MA is doing the same to its short MA, and the Rate of Change (ROC) provided a negative divergence to the price.
We’re witnessing rising pressure on stocks as investors appear to be losing patience with US lawmakers who can’t seem to close a deal on additional fiscal aid, while coronavirus cases and deaths continue to increase across the country.
Pfizer's (NYSE:PFE) UK vaccine launch hit a snag when two individuals with allergies suffered adverse reactions. The British government is now dramatically overvalued .” And Zoom Video (NASDAQ:ZM), the poster child of work-from-home shares, whose price jumped over 500% this year, also suffered losses because of a JP Morgan downgrade.
DoorDash (NYSE:DASH) bucked the trend yesterday when it made its public debuted, nearly doubling at its launch. Today bring's the much anticipated IPO of vacation home rental company Airbnb (NASDAQ:ABNB).
Yields on US Treasuries, including for the 10-year, declined along with the dollar, as the currency trades within a rising flag.
The greenback is gearing up for a resumption of its downtrend, signaled upon a downside breakout.
Gold edged lower.
The yellow metal is extending yesterday’s sharp selloff, despite the risk-off sentiment on Wednesday, amid both dollar-strength and as Bitcoin appears to be siphoning capital away from gold, which is trading within a falling channel.
Bitcoin is retracing Wednesday’s lows, though the crypotcurrency closed higher. It hammered out support right on top of the rising trendline, dispelling some of our concerns of a blown-out bullish pennant and bearish indicators across the board after its extraordinary advance.
Oil rose for the first time in four days.
The recovery is confirming the support of a bullish flag.
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