Tech stocks rebounded Monday, sparked partly by a mid-day run in shares of Tesla. The Great Rotation went into reversal as a decline in Treasury yields helped growth stocks vastly outperform value stocks.
That powered the Nasdaq 1-and-a-quarter percent higher. The S&P 500 added seven-tenth percent, while the Dow tacked on less than a third percent. Kramer Capital Research Chief Investment Officer Hilary Kramer says stocks are way ahead of themselves.
“Stocks are so overvalued so overstretched, there are areas that were depressed during the COVID-19 lockdown that have just absolutely been triples, quadruples, and the actual valuation versus what it would take for companies to reach valid with that valuation. It's just a complete, it’s completely unbalanced at this point.”
Tesla, whose shares have jumped more than 7-fold in the last 12 months, rose to $670. Star investor Cathie Wood’s investment management firm Ark Invest said it sees shares of the electric car maker hitting the $3,000 mark by 2025.
Shares of Kansas City Southern steamed higher, jumping 11%. The railroad operator is being acquired by Canadian Pacific Railway in a $25 billion deal. It’ll create the first railway to span the U.S., Mexico, and Canada.
In Turkey, President Tayyip Erdogan’s move to oust a hawkish central bank governor sparked fears of a reversal of rate hikes, sinking the iShares MSCI Turkey ETF almost 19%.