Wall Street rally in March is indicating the increasing rotation toward stocks that can benefit from the re-opening of US economy. In fact, the Dow Jones Industrial Average Index, which seems to be benefitting the most from the re-opening euphoria is up 2.8% in March whereas the S&P 500 index rose 0.3%. Meanwhile, the Nasdaq Composite is down 4.4% as it seems to be falling into correction territory.
Even on Mar 8, it was observed that consumer-discretionary stocks like Disney DIS and Target TGT were up 6% and 2.5%, respectively. Airline stocks like American Airlines AAL and United Airlines also climbed around 5% and 7%, respectively. Meanwhile, stocks like Apple AAPL, Alphabet (GOOGL) and Netflix NFLX that have largely gained from ‘new normal’ trends like work from home, increasing online streaming and online shopping declined more than 4% on the same day. Moreover, beneficiaries of ‘Stay at Home’ economy like Zoom Video and Peloton have lost 24% and 30%, respectively, in the past month.
The optimism surrounding the reopening of U.S. economy got stronger when the Centers for Disease Control and Prevention informed that people who completed the coronavirus vaccination process can safely hold indoor meets without the compulsion to wear masks, as mentioned in a CNBC article. Moreover, going by the same…
