[ad_1]
Shares on Wall Street plunged on Friday, marking the worst week in months as the market feared the Federal Reserve could raise interest rates earlier than expected.
The blue chip Dow Jones Industrial Average posted a weekly loss of 3.5%, the biggest drop since October when investors cycled out of value stocks. The benchmark S&P 500, meanwhile, fell 1.9%, its biggest weekly loss since February.
The , underperformed, losing just 0.3% in the same period when technology trading returned to favor.
This week we have another series of noteworthy earnings reports from companies like Nike (NYSE:) and FedEx (NYSE:), as well as a key conference from Fed Chair Jerome Powell. It’s going to be a busy week for Wall Street.
Going into market trends this week, we highlight below one stock that is likely to be in high demand and another that could fall further.
However, remember that our timetable is onlyfor the coming week.
Stock to buy: Amazon
This is a big week for Amazon.com (NASDAQ:) as it will kick off the annual Prime Day shopping extravaganza, expected to be one of the biggest shopping events in history at 3:00 a.m. ET on Monday.
The two-day event, which gives Prime members the chance to score incredible deals, will include discounts on more than two million items, according to the company.
While the e-commerce giant isn’t releasing official Prime Day sales figures, many expect online spending at this year’s event to overshadow last year’s total.
According to the digital research department of software company AdobeAmazon’s Prime Day 2021 is expected to bring in $11 billion, compared to $10.4 billion in revenue at last year’s event, which took place in October due to the COVID-19 pandemic.
In addition, 6 in 10 Americans surveyed said: Adobe they plan to shop during Prime Day this year.
“We expect Prime Day this year to surpass Cyber Monday’s 2020 spend level,” Jason Woosley, vice president, commerce product and platform, said on Adobe Experience the cloud. “It’s a huge elevator that takes place in mid-June.”
AMZN shares ended Friday at $3,486.90, less than 2% below the record high of $3,552.25 reached in September.
With a valuation of $1.76 trillion, Seattle, Washington-based e-commerce and cloud is the third most valuable company listed on the U.S. stock exchange, behind only Apple (NASDAQ:) and Microsoft (NASDAQ:).
That said, Amazon has lagged relatively behind the large-cap tech leaders this year, with only about 7% in 2021, as pandemic-era lockdown restrictions eased and consumers returned to brick-and-mortar stores in greater numbers.
However, the stock has been trading incredibly well lately, rising in seven of the past nine trading sessions, despite broader market volatility.
Despite concerns about impending antitrust reform, the US House Judiciary Committee plans to vote this week on a package of six antitrust laws targeting the market power of Big TechAMZN stock. economy-related stocks, such as , , and .
Stock to Dump: Bank of America
And speaking of financials, Bank of America (NYSE:) stocks appear to be under pressure in the coming days as investors worry about the negative impact of the Federal Reserves on corporate earnings.
Financial stocks of all shapes and sizes were sold last week after Federal Reserve officials said interest rates will have to rise faster and faster than they previously expected due to the upward trend.
The Fed’s aggressive shift unleashed a massive repositioning in global financial markets, including bonds.
US yields rose to 1.59% after the Fed’s update, but fell back to around 1.44% on Friday afternoon amid concerns about the future economic growth outlook.
Lower interest rates affect the return on interest banks earn from their loan products, or the net interest margin is the difference between the interest income generated by banks and the amount of interest paid to their depositors.
Given the heavy repositioning in the bond market, BAC stock appears to be a vulnerable investment in the short term.
Bank of America has reaped the benefits of a recovering economy, robust investment banking activities and reduced credit loss exposure for much of this year.
However, after rallying to its best level since March 2008 at $43.49 on June 3, BAC stock has since lost momentum, dropping about 11% to close at $38.78 on Friday.
Despite recent losses, shares of the Charlotte, North Carolina-based lender are up 28% in 2021.
At current levels, BofA has a market cap of approximately $332.3 billion, making it the second largest US banking institution after JPMorgan Chase (NYSE:).
[ad_2]
picture credit