Tech stocks continue to fly
The tech-heavy NASDAQ Composite has continued to rebound. The index rose for a fourth consecutive session yesterday, rising 0.4% in three hours to breach the 8,000 mark.
Tech stocks rallied after the Fed implied that it could slash interest rates if the economy’s outlook does not improve. Loose monetary policy has been arguably the biggest factor behind stock market rallies in the post-crisis era.
The Fed’s dovishness prompted the ten-year Treasury rate to fall below 2% for the first time in three years, and the dollar to depreciate. A weaker dollar can boost US tech stocks, which operate globally.
Slack had a blockbuster debut
The next big stock driver will likely be the G20 summit in Japan next week, where Trump is expected to meet his Chinese counterpart, Xi Jinping. The next earnings season is also approaching.
Workplace-messaging company Slack (WORK) has debuted on the New York Stock Exchange with a Spotify-like direct listing. Its stock has soared ~60% higher than its reference price of $26. Slack’s revenue has been growing at a breathtaking pace, rising 66.6% year-over-year to $134.8 million in the first quarter of fiscal 2020.