By: Steve Smith
With the recent rebound in the stock market, the “SPDR Trust (SPY – Get Rating)” is now just 4% away from its February all-time highs. But, with the COVID-19 virus still spreading, there is a rethinking of the pace and scope of the reopening, causing concern among investors that the rally may have been fueled by an overly optimistic outlook. Over the past few days, the retrenchment came fast and furious as companies such as “Apple (AAPL)” closed stores across the south from Arizona to Texas and Florida — and “Disney (DIS)” is being forced to delay the opening of parks and film releases.
Regional governments such as New York are now delaying the reopening and enforcing quarantine rules for out-of-state travelers. This led to the major indices suffering a 3% decline on Wednesday, breaking a nine-day winning streak for the “Nasdaq 100 (QQQ – Get Rating)” and their worst day in over a month.
While mega-cap and high-growth tech names such as “Zoom (ZM)” and “Redfin (RDFN)” continue powering higher, helping the headline index readings such as the QQQ and SPY remain near highs, there has been renewed damage below the surface as travel and leisure-related sectors get hammered.
Once again, we are… Continue reading at StockNews.com