Big Tech Lifts Stocks as Reflation Trade Wanes: Markets Wrap
A trader talks on the phone while working on the floor of the New York Stock Exchange. (Photographer: Michael Nagle/Bloomberg)

Big Tech Lifts Stocks as Reflation Trade Wanes: Markets Wrap

Some of the world’s largest technology companies led stocks to a fresh record on Monday, extending a rally that’s already added $6 trillion in value to the equity market this year.

After swinging between gains and losses throughout most of the session, the S&P 500 moved higher on news that Facebook Inc. won dismissal of two monopoly lawsuits. Some of the stay-at-home darlings like Apple Inc., Inc. and Zoom Video Communications Inc. climbed as the reflation trade waned. Cruise operators and airlines sank as governments from Europe to Asia imposed new limits on travel from Britain -- which is seeing a spike in coronavirus cases.

With stocks on track for one of their best first halves in history, the debate over elevated valuations is coming back to the forefront. The S&P 500 is trading above the average of the past decade, and this quarter potentially marking the peak of a profit recovery from the depths of the pandemic. Meantime, demand for protection against losses in coming months has risen in the options market.

Big Tech Lifts Stocks as Reflation Trade Wanes: Markets Wrap

“Investors should not be looking for stocks to move higher in a straight line, but rather prepare for the economic recovery taking shape,” John Stoltzfus, chief investment strategist at Oppenheimer, wrote to clients. “We look for progress, not perfection in the economic data this week, with the potential for any disappointments to give rise to volatility, and with results that are better than expected likely to provide positive offsets.”

Traders will sift through readings on consumer confidence, housing, manufacturing and the labor market over the course of the week -- with Friday’s jobs report forecast to show an acceleration in payrolls growth.

Read: CME Ends Daily 15-Minute Trading Halt on Equity-Index Products

Big Tech Lifts Stocks as Reflation Trade Wanes: Markets Wrap

For more market commentary, follow the MLIV blog.

Here are some events to watch in the markets this week:

  • OECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation Wednesday
  • China’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party Thursday
  • OPEC+ ministerial meeting Thursday
  • ECB President Christine Lagarde speaks Friday
  • The U.S. jobs report is due Friday

These are some of the main moves in markets:


  • The S&P 500 rose 0.2% as of 4 p.m. New York time
  • The Nasdaq 100 rose 1.3%
  • The Dow Jones Industrial Average fell 0.4%
  • The MSCI World index was little changed


  • The Bloomberg Dollar Spot Index rose 0.1%
  • The euro fell 0.1% to $1.1922
  • The British pound was little changed at $1.3875
  • The Japanese yen rose 0.1% to 110.62 per dollar


  • The yield on 10-year Treasuries declined four basis points to 1.48%
  • Germany’s 10-year yield declined four basis points to -0.19%
  • Britain’s 10-year yield declined six basis points to 0.72%


  • West Texas Intermediate crude fell 1.7% to $72.76 a barrel
  • Gold futures were little changed

©2021 Bloomberg L.P.

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