Megacap tech stocks have been on a roll. They could thrive even if interest rates turn higher again.

The megacap technology stocks have been outperforming the broader market of late. The NYSE FANG+ index NYFANG, -0.93% — which includes Facebook FB, -0.91%, Alphabet GOOGL, -0.96%, Amazon AMZN, -1.37% and Apple AAPL, -0.45% — has climbed 5% over the last month, compared with just 1% growth for the equal-weighted S&P 500 SP500EW, -0.26%.

The thing is, that relationship, while sounding logical, isn’t borne out by historical data. Andrew Berkin studied the relationship for a paper, “What Happens to Stocks when Interest Rates Rise.” Looking at 90 years of data, the S&P 500 SPX, -0.33% rose, on average, 10.8% when bond yields fell, and rose 12.2% when bond yields rose. Even separating out periods by quintiles when yields rose the most, the S&P 500 still gained 9%, on average.

Moderna MRNA, +5.28% jumped 8% in premarket trade on the news the vaccine-making biotech will be included in the S&P 500.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

European stocks inch higher as earnings roll in, with U.S. equity futures steady ahead of retail sales dataModest gains for European stocks greeted investors on Friday. U.S. equity futures were steady ahead of retail sales data.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Small-cap stocks are getting crushed this week — here’s what it meansU.S. small-cap stock investors are seeing the pain intensify this week, with the benchmark Russell 2000 losing its year-to-date lead over the tech-heavy... Means it might be time to think about buying them😀
La source: MarketWatch - 🏆 3. / 97 Lire la suite »