Fundamental analysis
26 February, 2021
U.S. stock futures wobbled Friday, putting the S&P 500 on track for its worst week in a month following a sharp selloff in technology stocks. Futures tied to the S&P 500 wavered between tepid gains and losses. The index ended Thursday down almost 2% for the week. Contracts linked to the Nasdaq-100 edged down 0.4% on Friday, suggest that tech stocks may continue to retreat. Dow Jones Industrial Average futures were also choppy. A wave of selling in U.S. government bonds on Thursday, combined with the Nasdaq Composite’s biggest fall since October, took some investors by surprise. Yields on U.S. Treasurys, considered among the safest assets to own, have been rising as money managers bet on a rapid economic rebound and pushed more funds into stocks and riskier assets. But the improving returns from bonds has also led to the view that technology stocks’ valuations are too high.
