Dow: -259.86…
Nasdaq: -105.28… S&P: -37.31…
The S&P(-0.9%) and Nasdaq (-0.7%) pulled back from record territory on Thursday, as investors mainly took profits amid pestering peak growth concerns. The Dow declined 0.8% while the Russell 2000 fell 0.9% after it led the major indices lower with a 2.7% intraday decline.
The negative bias was formed overnight, reportedly because Japan extended its coronavirus state of emergency through Aug. 22 (it later confirmed that spectators will be banned at the Olympics), the People’s Bank of China could soon cut the required reserve ratio for banks, and the 10-yr yield traded as low as 1.25%.
These developments played on the narrative that growth rates are apt to slow down, partially because the Delta variant is hurting foreign economies and could further strain parts of the labor market.
If this variant ends up being just a blip, then I would think things can resume to the upside. The market always looks for an excuse to sell anyway. We were due for a little pullback. We’ll see if the selling gets deeper in the days ahead or will the dip buyers step up.
My gut says we go higher because of TINA (there is no alternative)….to stocks, at least for now.
INMD traded well today (SAVA) too if you took any.
Decent reversals on the indexes today.
Back in the morning.
P&L here