‘Tapering’ Is Supposed to Be Bad for Tech. Why Did the Nasdaq Outperform the Dow?

barrons2021-05-20

Stocks dropped Wednesday as the Federal Reserve hinted at possible “tapering” in the minutes from its April meeting. That should have put an outsize dent into tech stocks, but that wasn’t the case.The...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

The_scalper
2021-05-20
The_scalper
New word…..tapering
cozyli
2021-05-20
cozyli
Like n comment pls. Thanks
- Huatmaster_:
  Test
LimLS
2021-05-20
LimLS
Tapering may come sooner that we expected since Fed start to drop hints. Just be ready for it and prepare for the rise in yield
- diggydog:
  Agreed.
Ultraviolet
2021-05-20
Ultraviolet
Like and comment please :)
- TTH4Legs:
  Done. Reply pls, thx
mad276
2021-05-20
mad276
like and comment pls
- 88_TWB_88:
  comment & like thks
- mad276:
  yup
MagPie
2021-05-20
MagPie
Tech is back in focus again

Leave a comment

116

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1112258601?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2021-05-20 11:29","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1112258601","market":"us","top_or_hot":-1,"title":"‘Tapering’ Is Supposed to Be Bad for Tech. Why Did the Nasdaq Outperform the Dow?","media":"barrons","content":"<div>\n<p>Stocks dropped Wednesday as the Federal Reserve hinted at possible “tapering” in the minutes from its April meeting. That should have put an outsize dent into tech stocks, but that wasn’t the case.The...</p>\n\n<a href=\"https://www.barrons.com/articles/the-nasdaq-beat-the-dow-despite-tapering-talk-heres-why-51621455819?mod=hp_LEAD_1\">Source Link</a>\n\n</div>\n","source":"lsy1601382232898","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>‘Tapering’ Is Supposed to Be Bad for Tech. Why Did the Nasdaq Outperform the Dow?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n‘Tapering’ Is Supposed to Be Bad for Tech. Why Did the Nasdaq Outperform the Dow?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-20 11:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/the-nasdaq-beat-the-dow-despite-tapering-talk-heres-why-51621455819?mod=hp_LEAD_1><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Stocks dropped Wednesday as the Federal Reserve hinted at possible “tapering” in the minutes from its April meeting. That should have put an outsize dent into tech stocks, but that wasn’t the case.The...</p>\n\n<a href=\"https://www.barrons.com/articles/the-nasdaq-beat-the-dow-despite-tapering-talk-heres-why-51621455819?mod=hp_LEAD_1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".SPX","symbol_name":"S&P 500 Index","start_time":0,"source_url":"https://www.barrons.com/articles/the-nasdaq-beat-the-dow-despite-tapering-talk-heres-why-51621455819?mod=hp_LEAD_1","article_id":"1112258601","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1112258601","pubTimestamp":1621481351,"sourceInfo":{"source_id":"lsy1601382232898","name":"Barrons"},"weMediaInfo":null,"summary":"Stocks dropped Wednesday as the Federal Reserve hinted at possible “tapering” in the minutes from it","collect":0,"end_time":0,"defaultTopTitle":"barrons.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯",".IXIC":"NASDAQ Composite"},"translate_title":"“缩减规模”被认为对科技行业不利。纳斯达克为何跑赢道指？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9},"content_text":"Stocks dropped Wednesday as the Federal Reserve hinted at possible “tapering” in the minutes from its April meeting. That should have put an outsize dent into tech stocks, but that wasn’t the case.The Dow Jones Industrial Average fell 164 points, or 0.5%, while the S&P 500 declined 0.3%. The tech-heavy Nasdaq Composite dipped just 3.9 points, or 0.03%.The Nasdaq’s outperformance was strange. The Federal Reserve released the minutes from its latest meeting at 2 p.m. Wednesday, and they contained a shocker—hints of ‘tapering,’ or reducing the size of, its asset purchases. The language wasn’t specific, simply saying “at some point in upcoming meetings,” and it was highly contingent on the U.S. economy continuing to strengthen. Still, less money going into the bond market would reduce bond prices and lift their yields, and that should put an outsize dent into the valuations of growth and technology companies, and boost the cyclical companies in the Dow.But that’s not what happened. Just five Dow stocks finished higher Thursday— Salesforce.com (CRM), Intel (INTC), Microsoft (MSFT), Procter & Gamble (PG), and Walmart (WMT)—while the Nasdaq’s bounce was led by Analog Devices (ADI) and Maxim Integrated Products (MXIM), which gained more than 4%.For tech stocks, it might simply have been a case of “sell the rumor, buy the news.” Fears of inflation—and the tapering that would follow—have caused the Nasdaq to drop nearly 6% from its April all-time high, while the Dow had fallen just 2% from its own record.Now that the minutes appear to have confirmed the possibility that the Fed might consider tapering—despite its protestations—investors might have moved on to other things, at least for one day. “It has been talked about, for a while, that once [the] taper announcement hits, the interest rate cloud over Tech would start to clear,” writes Dennis DeBusschere, head of portfolio strategy research at Evercore. “That could help explain the shot higher in Tech or Growth following the taper hint in the Fed minutes.”It will take more than just a hint of tapering to keep tech moving higher, however. For that to happen, the 10-year Treasury yield, which jumped as high as 1.68% on Wednesday, can’t go much higher. If the yield were to move towards 2%, which wouldn’t be a shocker with the market pricing in 2%-plus inflation over the next five years, tech stocks would likely fall again.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":130944881,"gmtCreate":1621508410343,"gmtModify":1704358755230,"author":{"id":"3579590433924918","authorId":"3579590433924918","name":"The_scalper","avatar":"https://static.tigerbbs.com/b3fede485fa71d42dc4ea08960ab3e00","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3579590433924918","idStr":"3579590433924918"},"htmlText":"New word…..tapering","listText":"New word…..tapering","text":"New word…..tapering","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/130944881","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":130998202,"gmtCreate":1621501035306,"gmtModify":1704358653203,"author":{"id":"3574167470846346","authorId":"3574167470846346","name":"cozyli","avatar":"https://static.tigerbbs.com/509ef7c09d0624801748249c5a3e0117","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3574167470846346","idStr":"3574167470846346"},"htmlText":"Like n comment pls. Thanks","listText":"Like n comment pls. Thanks","text":"Like n comment pls. Thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/130998202","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4389399,"gmtCreate":1621502742698,"gmtModify":1680789892787,"authorId":3575073801477311,"author":{"id":3575073801477311,"idStr":"3575073801477311","authorId":3575073801477311,"name":"Huatmaster_","avatar":"https://static.tigerbbs.com/277988997c95e91fca58abedd237de83","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.28","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":130998202,"type":1,"supId":0,"prevId":0,"content":"Test","text":"Test","html":"Test"}],"langContent":"EN"},{"id":197728059,"gmtCreate":1621487497771,"gmtModify":1704358439439,"author":{"id":"3572923586954779","authorId":"3572923586954779","name":"LimLS","avatar":"https://static.tigerbbs.com/217b03b0c4808fb537070ba4e8f9d83f","vip":1,"crmLevel":5,"crmLevelSwitch":1,"authorIdStr":"3572923586954779","idStr":"3572923586954779"},"htmlText":"Tapering may come sooner that we expected since Fed start to drop hints. Just be ready for it and prepare for the rise in yield","listText":"Tapering may come sooner that we expected since Fed start to drop hints. Just be ready for it and prepare for the rise in yield","text":"Tapering may come sooner that we expected since Fed start to drop hints. Just be ready for it and prepare for the rise in yield","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/197728059","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4388026,"gmtCreate":1621491024441,"gmtModify":1680789873710,"authorId":3575091423649914,"author":{"id":3575091423649914,"idStr":"3575091423649914","authorId":3575091423649914,"name":"diggydog","avatar":"https://community-static.tradeup.com/news/476e481044aa54d1d955e8bc4b856dd4","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.29","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":197728059,"type":1,"supId":0,"prevId":0,"content":"Agreed.","text":"Agreed.","html":"Agreed."}],"langContent":"EN"},{"id":197729350,"gmtCreate":1621487215570,"gmtModify":1704358434982,"author":{"id":"3580342534451795","authorId":"3580342534451795","name":"Ultraviolet","avatar":"https://static.tigerbbs.com/0a37729d59392a2fd9ac9c4dbe50e826","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3580342534451795","idStr":"3580342534451795"},"htmlText":"Like and comment please :)","listText":"Like and comment please :)","text":"Like and comment please :)","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/197729350","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4388643,"gmtCreate":1621496789235,"gmtModify":1680789883679,"authorId":3576220386239608,"author":{"id":3576220386239608,"idStr":"3576220386239608","authorId":3576220386239608,"name":"TTH4Legs","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.06","exceedPercentage":"60.32%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":197729350,"type":1,"supId":0,"prevId":0,"content":"Done. Reply pls, thx","text":"Done. Reply pls, thx","html":"Done. Reply pls, thx"}],"langContent":"EN"},{"id":197762137,"gmtCreate":1621486848229,"gmtModify":1704358427394,"author":{"id":"3575548858399731","authorId":"3575548858399731","name":"mad276","avatar":"https://static.tigerbbs.com/1a9a58ce8db8a0e8a73026ea18b28fcc","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3575548858399731","idStr":"3575548858399731"},"htmlText":"like and comment pls","listText":"like and comment pls","text":"like and comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/197762137","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4387564,"gmtCreate":1621487050607,"gmtModify":1680789868832,"authorId":3582503329600891,"author":{"id":3582503329600891,"idStr":"3582503329600891","authorId":3582503329600891,"name":"88_TWB_88","avatar":"https://static.tigerbbs.com/00cb7ae6d4c8f5f282b6f3a594a2c648","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":197762137,"type":1,"supId":0,"prevId":0,"content":"comment &amp; like <u>thks</u>","text":"comment &amp; like <u>thks</u>","html":"comment &amp; like <u>thks</u>"},{"id":4387592,"gmtCreate":1621487214959,"gmtModify":1680789868816,"authorId":3575548858399731,"author":{"id":3575548858399731,"idStr":"3575548858399731","authorId":3575548858399731,"name":"mad276","avatar":"https://static.tigerbbs.com/1a9a58ce8db8a0e8a73026ea18b28fcc","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":197762137,"type":1,"supId":4387564,"prevId":0,"content":"yup","text":"yup","html":"yup"}],"langContent":"EN"},{"id":197763863,"gmtCreate":1621486635952,"gmtModify":1704358421609,"author":{"id":"3573728905231423","authorId":"3573728905231423","name":"MagPie","avatar":"https://static.tigerbbs.com/86bf766e96cabebb79ece6877432d5da","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3573728905231423","idStr":"3573728905231423"},"htmlText":"Tech is back in focus again","listText":"Tech is back in focus again","text":"Tech is back in focus again","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/197763863","repostId":1112258601,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":116,"commentSize":29,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1112258601"}