on the crypto
Tech-related names spiked this week, powered primarily by Tesla Inc., Amazon.com, and Netflix, which have fostered a stratospheric race for large-cap tech companies and online companies.
What is driving the market?
Shares of Salesforce.com Inc. CRM were up nearly 26%, also helping to bolster interest in tech names after the company announced its last-quarter results late Tuesday evening.
For the first time, its revenues reached $ 5 billion, exceeding observers' expectations. The company also benefited from the S&P Dow Jones Indices announcement on Monday that it would be included in the Dow, starting Monday.
The general market sentiment
As for general market sentiment, investors may also be looking for clues about the potential for further action by governments in terms of monetary stimulus.
A declining trend in the number of new coronavirus infections in the United States and optimism about the prospects for a vaccine and other COVID-19 cures were cited for pushing stocks to new highs, but analysts said the stocks could continue to grow even without a new impetus.
Some fear that investors are approaching a phase of "euphoria" that could herald a short-term withdrawal. Carlos Diez, founder and CEO of MarketGrader, agrees with this sentiment.
However, he argues that “We have one of the biggest headwinds in history which is massive, massive monetary stimulus globally. It is difficult to argue against risk assets when there is so much liquidity flowing into the market.
I don't expect a major recession in the next six to nine months ”. Unlike other active market participants, Diez doesn't think another round of fiscal stimulus is necessary - or planned. "I think investors are probably starting to worry about the fiscal situation and what will happen after this is all over."
Which companies are the focus of attention?
The big names in technology are the driving force of the market at this stage. In the last week, the shares of the giants Apple, Tesla, Netflix and Amazon have confirmed the bullish trend. Apple Inc. AAPL stock was up 1,4% after a target price hike to $ 600, the highest among Wall Street analysts and a nearly 20% gain from current trading levels.
Shares of Tesla Inc. TSLA broke the $ 2,150 mark, up 6,4% after updating the target price to $ 2,500. Shares of Netflix NFLX were up 11,6%, establishing themselves near their highest level since July 10 and on track to the best one-day percentage gain since January 2019. Amazon shares.com AMZN was up 2,9%, close to the Nasdaq-100 threshold.
