Day Traders Diary

4/4/22

The major averages rose to start the week as traders shook off recession fears and bought technology shares that were beaten up in the first quarter. The Dow Jones Industrial Average rose 103 points or 0.3%. The S&P 500 is up 36 points while the Nasdaq Composite advanced 271 points or 1.9%.

Tech shares, which were among the hardest-hit sectors in the first quarter as investors feared the Fed's rate-hiking plans could hinder the group, rose on Monday.

Twitter shares gave the Nasdaq a lift after surging more than 28% following news that Elon Musk purchased a 9.2% passive stake in the company. Tesla's stock also rose 5.7% on the back of its latest quarterly electric vehicle delivery figures on Saturday, which came in above the year-earlier period.

Technology companies including Apple, Amazon, Nvidia and Microsoft were also up more than 1%.

Meanwhile, shares of Starbucks dipped 4.4% after the coffee chain suspended its share buyback program.

A key section of the yield curve remained inverted after the 2-year and 10-year Treasury yields shifted for the first time since 2019 Thursday evening. The 5-year note yield is also trading above its 30-year counterpart.

Meanwhile, oil moved higher with WTI crude jumping more than 4% and back above $100 a barrel, while Brent crude rose 3.2%, further raising investor concerns about a possible recession.

Oil's gains came as investors continue to monitor developments in Ukraine. German Chancellor Olaf Scholz said Sunday that Western nations will impose additional sanctions on Russia in the coming days.

Wall Street has entered a seasonally strong period, with April typically being one of the best months for stocks.

According to data from MKM Partners' JC O'Hara, the S&P 500 has averaged a gain of 2.41% in April over the last 20 years. The data also shows that the S&P 500 has posted an April gain in 16 of the last 17 years.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.