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Feb. Jobs, Tech Tantrum, Biden Relief: 3 Things to Watch

Stock MarketsMar 04, 2021 04:31PM ET
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© Reuters.

By Liz Moyer

Investing.com -- Thursday’s market action demonstrated the well-known habit of stocks reacting to even the mildest comments from Federal Reserve policy makers.

Fed Chairman Jerome Powell said the central bank would keep buying bonds at its current pace despite the “notable” rise in U.S. interest rates, shrugging off the notion that inflation would spiral out of control.

He has said this before, but investors are becoming increasingly worried about rising rates, so repeating the same mantra only added to investor jitters.

Nasdaq has now given up its gains for the year as growth stocks fall out of favor.

Here are three things that could affect trading tomorrow:

1. Jobs number

The government’s tally of new non-farm jobs added for February is expected to be released at 8:30 AM ET (1330 GMT) on Friday. Analysts are expecting a reading of 182,000, up from the 49,000 reported for January.

Job numbers are an important barometer of the recovering economy. The number of people who applied for jobless benefits last week remained at an elevated level but were slightly below expectations.

2. Tech stocks

As tech stocks sank on Thursday, Reuters calculated that the NASDAQ Composite had wiped out all of its gains this year, falling about 10% from its record high on Feb. 12. That would put the tech-heavy index in a correction. 

With interest rates rising, it seems investors were thinking twice about owning richly valued names like Tesla Inc (NASDAQ:TSLA), which is now 30% lower than its record high earlier this year. But in previous sell-offs, we’ve seen investors swoop in to buy the dip. Friday will show us whether that pattern holds true this time or whether a true rotation from growth to value stocks is taking place. 

3. Biden stimulus

The Senate voted to consider President Joe Biden’s $1.9 trillion stimulus, but it’s not going to be an easy slam dunk. Reuters reported the vote along party lines, 51 to 50, with Vice President Kamala Harris breaking the tie.

A final vote could come over the weekend, though Republicans could try to stall the movement of the bill with procedural matters. Democrats said they would send more aid to smaller U.S. states to make sure they won unanimous party support.

 

Feb. Jobs, Tech Tantrum, Biden Relief: 3 Things to Watch
 

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Comments (5)
Irvin Mermelstein
Irvin Mermelstein Mar 04, 2021 11:38PM ET
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The markets are correcting. What's the big shock? Investors are rotating into value stocks.
Boyoung Schang
Boyoung Schang Mar 04, 2021 8:31PM ET
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Biden said  "we're back!"  Now, we understand what he meant!
Viking Fire
Viking Fire Mar 04, 2021 8:17PM ET
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Sell off in tech makes no sense to me. Wven during the most inflationary times tech still leads.
Sam Jennings
Sam Jennings Mar 04, 2021 6:50PM ET
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It's really deceptive calling this a "tantrum", as if it were some immature reaction, by a kid, when Biden's policies are hostile to the economy... starting with his goal of raising the corporate income tax from 21% to 28%, and raising the capital gains tax to a higher level, as well.  (40.8% for those making over a million a year - which includes MANY WALLS STREET INVESTORS, AND COMPANIES).  So, for sure, this is not a tantrum, at all.  It is a rational reaction to economically hostile policies, by Biden and his party.  Please, author, don't try to undermine that reality with coddle words which downplay the harsh anti-market policies of Biden's political party.  Biden deserves to be criticized.
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Rob Zuehl
Rob Zuehl Mar 04, 2021 6:50PM ET
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How about the ability to complete a sentence
David Ripke
David Ripke Mar 04, 2021 6:50PM ET
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The simplest solutions to almost all economic problems is to give people a small stipend and then give all currencies an expiration date so they can be funnelled back into the economy
Boyoung Schang
Boyoung Schang Mar 04, 2021 6:50PM ET
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Don't forget the wealth tax what Elizabeth Warren is trying to push! She wants you to pay taxes on your assets. Most of people won't have to pay for the wealth tax like 100 million asset she suggested but it will affect the stock markets because companies have to pay for higher taxes, higher wages, mandatory health insurances for their employees. And the gas price is up, so the price will go up naturally. This is an anti-business policy! It will hurt everyone eventually. Don't buy any retail stocks, if you are in stock markets, it will not grow!!
Viking Fire
Viking Fire Mar 04, 2021 6:50PM ET
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It is a tanturm. Theyve been talking about it for 2 years
Sam Jennings
Sam Jennings Mar 04, 2021 6:50PM ET
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Viking Fire  The market was climbing, while they talked... but now they menace the country with actual power.  This is new.  Notice it is happening after Biden is sworn in, and people have had enough time to sober up.
Kelle Wirt
Kelle Wirt Mar 04, 2021 6:47PM ET
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How about we have a clear list of everything that’s in that bill?
marc emanuel
marc emanuel Mar 04, 2021 6:47PM ET
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well its online and its being read in the Senate...not sure how much clearer you need
David Ripke
David Ripke Mar 04, 2021 6:47PM ET
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marc emanuel he said clear list. Everyone knows that wording on these bill’s is meant to make you not wanna read it
 
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