Traders are working on the NYSE floor.
Rising interest rates are scaring the stock market, but stocks related to the economic recovery and value stocks shine as investors bet on an economic recovery.
The rapid rise in bond yields caused a pause in the broader stock market on Monday, as investors pulled back from tech and other names of growth. The S&P 500 was down 0.77%, but the Nasdaq, led by technology, lost 2.46%. However, the Dow Jones rose slightly, up 27 points, or less than 0.1% to 31,521.69.
The trend was playing again Tuesday with futures on the Nasdaq-100 being large and futures on the broader market only falling slightly.
“What the market is trying to figure out is that it will pretty much ignore the higher rates because they reflect a strengthening economy, especially when the Fed itself says, ‘No, we don’t ‘we’re not going to raise rates, “” Sam Stovall said. , Chief Investment Strategist at CFRA.