Several US stock averages have started lowering for 2 days in a row. The rally in the stock market that has taken place recently has lost its steam. Instead, we are seeing the likes of the indices for the S&P 500 and the Dow Jones forecast declining.
Dow Jones technical analysis shows that the Dow fell by around 0.22%. Meanwhile, the S&P 500 declined by 0.06%. Finally, the Nasdaq jumped up by 0.31%. The fact that the Nasdaq performed so well points to the possibility that technology is completely outperforming other sectors. In fact, it may be buoying the rest of the markets, preventing it from reducing any further. We will have to see what this means for the future Dow Jones forecast.
A few tech firms displayed excellent performance in the past two sessions. GitLab is a company focusing on open-source development for software as a platform and performed particularly well. Its stock value jumped by 11.50% and has outdone expectations considerably for the last quarter. Nio, a Chinese electric car manufacturer, also performed well, climbing up by 1.50% in the same period.
However, despite the tech sector’s positive performance, the question remains on why the stocks have been suffering. Traders have now started wondering whether the sudden drive upwards was too soon. They may have overestimated the potential of the market. After all, there was a positive drive upwards for 5 weeks in a row. On the whole, though, stocks are still up over the course of the quarter and the year. We are just seeing a minor correction for the weekend Dow.
November showed very strong growth for stocks and the economy in general, and it will be a good way to end the year. Now, we are seeing things slow down again.
We also saw bond yields falling off in this very same period. US 10-year bond yields are below 4.20% as labour markets calm down.