Good morning, and welcome to the ABC’s daily business and markets blog.
After some brutal days of selling over recent weeks, it looks like the bears are taking a walk and Goldilocks has snuck in to the market.
Tech stocks are leading gains on Wall Street as more adventurous investors seek what they see as a bargain.
“Sector details show largely a tech-led rebound with IT +1.4% and Comm Services +1.7%,” noted Tapas Strickland in NAB’s morning note.
The tech heavy Nasdaq index was up 1.2% to 17,648, while the broader S&P 500 had a milder 0.5% rally to 5,599 points.
The local market, short on those volatile tech stocks, looks set to follow those more modest gains, with the ASX SPI 200 futures up 0.2% to 7,799.
But NAB’s head of market economics, Stickland, warned there are some signs the recent falls might have much further to run.
“Worth noting in your scribe’s view a WSJ article covering the Yale CEO Caucus where CEOs on the whole were concerned about Trump’s policies, but were also reluctant to question policy openly,” he observed.
“When asked how much the stock market would need to decline for them to speak out collectively, 44% said it would have to fall 20%. Another 22% said stocks would have to fall 30% before they would take a stand.
“The inference being the Trump put could be a lot lower than where some people think.”
Maybe the bears are just out for a short stroll? Watch out Goldilocks!
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