Skip to main content
Home
  • English
  • العربية
  • SUPPORT
  • Log in
  • JOIN EXINITY
  • Markets
    • Markets

    Explore global financial markets

    Individual stocks
    • Stocks
    • Stock CFDs
    Forex and commodities
    • Forex pairs
    • Commodities
    Indices
    • Indices
    • Currency indices
  • Ways to trade
    • Ways to trade

    Explore our services at a glance

    • Exinity World

    Get pure investing simplicity and build a global portfolio from just $20

    • Exinity Trader

    Been trading for a while?
    Say hello to Trader

    • Exinity Trader Pro

    Pro, meet pro.
    The service for experienced traders

  • Edge
    Edge

    The markets are full of opportunity, but you won’t find it by accident. Edge puts useful and jargon-free insight at your fingertips.

    Edge library
    • Understanding the markets
    • Analysis and forecasting
    • Understanding risk and returns
    • Learning from experience
    Trading ideas
    • What our experts say
    • Meet our experts
  • About

What our experts say

Equity bulls aren’t giving up

Hussein Sayed
Chief Market Strategist
16.09 @ 09:54 GMT
Hussein Sayed

US stocks rallied yesterday after the S&P 500 fell by almost 2.5% from its record high this month. Energy, financials, basic materials, and industrial sectors all gained by more than 1%, while Tech and consumer cyclical stocks also managed to advance 0.84% and 0.81% respectively. For every four stocks that gained only one declined, representing a broad rally, something which we have experienced only few times recently, and implies improving investors’ confidence.

 

Inflation expectations have been the biggest worry amongst investors, but the latest CPI release from the US seems to have supported views that high inflation will begin to go away soon. I’m not completely in the “transitory camp” yet, but most market participants are. If the markets are right on inflation and it proves to be transitory, the risk of surging bond yields diminishes, and keep stocks the only game in town.

 

However, stocks also need robust economic and corporate profit growth to sustain the momentum, and this is what investors should worry about in the upcoming weeks and months. The economic prospects are clearly deteriorating, thanks to the delta variant. Late last year, hopes were high that towards mid 2021 everything will return to normal. In fact, we are still far away from normal, especially in the US in which daily deaths due to covid are showing no sign of abating. The country averaged 1,805 new Covid-19 deaths each day over a week as of Tuesday according to John Hopkins, with new daily cases average above 150,000. Despite these depressing figures, investors are not overly worried, but if the third covid wave lasts longer, there is lot of risk that needs to be priced in equities.   

 

Expect volatility to increase over the upcoming days until those headwinds and concerns abate. Friday also brings the quadruple witching where stock options, stock index futures, and stock index options all expire, and that tends to increase the level of volatility.

Disclaimer: This material is comprised of personal opinions and ideas. It should not be construed as an investment recommendation or a solicitation for any transaction. It does not imply any obligation to purchase investment services, nor does it guarantee or predict future performance. Exinity, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Ready to jump into the markets?

Choose your Exinity experience and create your account in minutes

JOIN EXINITY
  •  
  •  
  •  
  •  
Home
  • About us
    • Exinity Group
    • Careers
    • Company news
    • Meet our experts
  • Useful links
    • Trading platforms
    • Trading tools
    • Trading hours
  • Support
    • FAQ
    • Contact us

The services on the Website are provided by Exinity Limited (exinity.com), regulated and licensed by the Financial Services Commission of the republic of Mauritius with an Investment Dealer License bearing license number C113012295.

Card transactions are processed via Exinity Services Limited (EU merchant company), a company incorporated in the Republic of Cyprus with company number ΗΕ 400404, registered office at 64 Agiou Georgiou Makri, Anna Maria Lena Court, Office 201, 6037, Larnaca, Cyprus and regulated by the laws of Cyprus. Address for cardholder correspondence: [email protected] Business location address: 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus.

Exinity ME Ltd is registered under the Laws of the Abu Dhabi Global Market (“ADGM”), with registered offices at 16-104, 16 Floor, Al Khatem Tower, ADGM Square, Al Maryah Island, Abu Dhabi, UAE. It is regulated by the Financial Services Regulatory Authority (“FSRA”), Financial Services Permission Number 200015 and is a duly licensed Category 3A Firm authorized to provide financial products and services to persons who meet the qualifying criteria of a Professional Client as defined by the FSRA rules.

Risk Warning: Trading Forex and Leveraged Financial Instruments involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Trading non-leveraged products such as stocks also involves risk as the value of a stock can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of the Exinity brand based on the legal requirements in his/her country of residence. Please read Exinity’s full Risk Disclosure.

Regional restrictions: The Exinity brand does not provide services to residents of the USA, Japan, New Zealand, Canada, Mauritius, Haiti, Hong Kong, Suriname, the Democratic Republic of Korea, Puerto Rico, the Occupied Area of Cyprus.

© 2021 Exinity

Terms and agreements   |   Privacy   |   Cookies