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U.S. stock markets closed mostly lower on Friday as major bank shares declined following the U.S. Federal Reserve’s decision to not extend the temporary relief from capital requirement rules. However, high-flying technology growth stocks made a comeback in Friday’s session and outperformed their value peers. The Dow and the S&P 500 ended the day in red while the Nasdaq Composite closed the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.7%, or 234.33 points, closing at 32,627.97, continuing its two-day losing streak. Notably, 21 components of the 30-stock index ended in red while 9 finished the day in green.
The tech-heavy Nasdaq Composite closed the day at 13,215.24, up 0.8%, snapping its losses from Thursday, on the back of strong performance by large-cap technology stocks. The S&P 500 dipped 0.1%, closing the day at 3,913.10, continuing its losses from Thursday. The Financials Select Sector SPDR (XLF) and the Real Estate Select Sector SPDR (XLRE) dipped 1.2% and 1.3%, respectively. Notably, five out of eleven sectors of the benchmark index closed in the negative zone and six in green.
The fear-gauge CBOE Volatility Index (VIX) was down 2.9% to 20.95. A total of 16.5 billion shares were traded on Friday, higher than the last 20-session average of 14.4 billion. Advancers outnumbered decliners on the NYSE by a 1.25-to-1 ratio. On Nasdaq, a 1.70-to-1 ratio favored advancing issues.
Fed’s Decision to Not Extend Capital Requirement Relief Led Bank Stocks Lower
Bank stocks moved lower on Friday following the U.S. Federal Reserve’s decision to not extend the relaxation rule implemented during the COVID-19 pandemic on supplementary leverage ratio for banks. Notably, the exemption is set to expire on Mar 31. The rule allowed banks to hold less capital against Treasuries and other holdings to help calm the bond markets during the pandemic and also provide encouragement to banks for lending.
Technology Stocks Aided Nasdaq to Close In The Green
A rebound in high-flying technology growth stocks allowed the tech-heavy Nasdaq Composite to gain in Friday’s session, reversing the recent trend of outperformance of value stocks that might benefit from the gradual reopening of the economy. Notably, shares of heavyweight technology names like Zoom Video Communications, Inc. (ZM - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Netflix, Inc. (NFLX - Free Report) rose 3.1%, 1.6% and 1.5%, respectively.
Weekly Roundup
U.S. stock markets saw major indexes declining during the week as the Dow and S&P 500 dipped 0.5% and 0.8%, respectively, falling from record highs reached during the week and snapping their two-week winning streak. The Nasdaq Composite also dipped 0.8%, recording its fourth week of losses out of five. Recent concerns regarding the rising bond yields led the major indexes to decline during the week.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Stock Market News for Mar 22, 2021
U.S. stock markets closed mostly lower on Friday as major bank shares declined following the U.S. Federal Reserve’s decision to not extend the temporary relief from capital requirement rules. However, high-flying technology growth stocks made a comeback in Friday’s session and outperformed their value peers. The Dow and the S&P 500 ended the day in red while the Nasdaq Composite closed the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.7%, or 234.33 points, closing at 32,627.97, continuing its two-day losing streak. Notably, 21 components of the 30-stock index ended in red while 9 finished the day in green.
The tech-heavy Nasdaq Composite closed the day at 13,215.24, up 0.8%, snapping its losses from Thursday, on the back of strong performance by large-cap technology stocks. The S&P 500 dipped 0.1%, closing the day at 3,913.10, continuing its losses from Thursday. The Financials Select Sector SPDR (XLF) and the Real Estate Select Sector SPDR (XLRE) dipped 1.2% and 1.3%, respectively. Notably, five out of eleven sectors of the benchmark index closed in the negative zone and six in green.
The fear-gauge CBOE Volatility Index (VIX) was down 2.9% to 20.95. A total of 16.5 billion shares were traded on Friday, higher than the last 20-session average of 14.4 billion. Advancers outnumbered decliners on the NYSE by a 1.25-to-1 ratio. On Nasdaq, a 1.70-to-1 ratio favored advancing issues.
Fed’s Decision to Not Extend Capital Requirement Relief Led Bank Stocks Lower
Bank stocks moved lower on Friday following the U.S. Federal Reserve’s decision to not extend the relaxation rule implemented during the COVID-19 pandemic on supplementary leverage ratio for banks. Notably, the exemption is set to expire on Mar 31. The rule allowed banks to hold less capital against Treasuries and other holdings to help calm the bond markets during the pandemic and also provide encouragement to banks for lending.
Consequently, shares of Wells Fargo & Company (WFC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) slid 2.9%, 1.6 and 1.1%, respectively. Notably, Goldman Sachs carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Technology Stocks Aided Nasdaq to Close In The Green
A rebound in high-flying technology growth stocks allowed the tech-heavy Nasdaq Composite to gain in Friday’s session, reversing the recent trend of outperformance of value stocks that might benefit from the gradual reopening of the economy. Notably, shares of heavyweight technology names like Zoom Video Communications, Inc. (ZM - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Netflix, Inc. (NFLX - Free Report) rose 3.1%, 1.6% and 1.5%, respectively.
Weekly Roundup
U.S. stock markets saw major indexes declining during the week as the Dow and S&P 500 dipped 0.5% and 0.8%, respectively, falling from record highs reached during the week and snapping their two-week winning streak. The Nasdaq Composite also dipped 0.8%, recording its fourth week of losses out of five. Recent concerns regarding the rising bond yields led the major indexes to decline during the week.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>