The NASDAQ composite fell a little on a day-to-day basis, as did the Standard and Poor 500. The Dow Jones Industrial average also closed lower on a day-to-day basis. However, all three indexes posted weekly gains, with NASDAQ outperforming. Kestra Private Wealth Services CEO Rob Bartenstein said he found the optimism strange, and it may be ephemeral.
Key Takeaways:
- Signs of short-term exhaustion have arisen in macro-level indices representing stocks, bonds, commodities, and currencies,” said Katie Stockton, chief technical strategist at BTIG, in an email. “This tells us to expect a pause in their steep upmoves/downmoves in the next 1-2 weeks as overbought/oversold conditions are absorbed.”
- I think we’re at a point now where we a transitioning from the reaction to the election to a reaction to the current fundamentals, which is important,” said Art Hogan, chief market strategist at Wunderlich Securities. He pointed to higher Treasury yields, the rise in the U.S. dollar and higher oil prices
- With speculations mounting over Donald Trump cutting taxes and boosting infrastructure spending, the Fed may be forced to repeatedly raise US rates in 2017 in an effort to control inflation,” Lukman Otunuga, research analyst at FXTM, said in a note.
“Entering Friday’s session, the Dow, S&P 500 and Nasdaq composite were all within half a percent of their previous all-time highs.”
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