The Nasdaq has officially entered correction territory, having decreased by more than 10 percent from its peak of February 12. Formerly big stocks were among the worst performers, with Apple falling 4% and Tesla almost 6%. (The electric automaker is now down more than 20% year-to-date.)
This also has famous title pickers beaten like Cathie Wood of ARK Investment Management, who has drawn attention to Internet trading forums for her bets on so-called disruptive companies like… Apple and Tesla. Its flagship exchange-traded fund is down 31% since February 16.
An accelerated economic recovery is an important factor, market watchers say. As the $ 1.9 trillion stimulus bill nears congressional approval, investors are betting on a return to pre-pandemic conditions, including levels of consumer spending. This can mean higher inflation, push up bond yields, and offer investors broader options than tech stocks.
Then there’s the wild card: meme stocks. Stocks in GameStop and other companies popular with Internet traders rallied yesterday, but your guess as to why is as good as ours. (Separately, GameStop stated that its board form a committee study strategies to take advantage of the rise in its stock.)
The Chamber’s less than total ban on political donations
The United States Chamber of Commerce, the nation’s largest trading group, has clarified its donation policy to political action committees following the January 6 riot on Capitol Hill – and it’s not as difficult that the organization once suggested.
“We do not think it is appropriate” to judge lawmakers “solely on the basis of their votes on electoral certification”,the band said last week, although the storming of Capitol Hill was prompted by Congressional votes to certify the 2020 presidential election. The House will instead consider other actions, such as whether lawmakers promoted fraud plots electoral campaign without foundation, to decide to support them.
The group had left the door open for something less than completely disowning some lawmakers. Its policy director, Neil Bradley, declared days after the insurrection that some lawmakers had “lost the support of the US Chamber of Commerce.” Period. But he never called specific politicians. He also said the chamber would “consider all” of what elected officials said and subsequently did.
Chamber takes position that could spark backfire for member companies, who are more vulnerable to negative reactions than commercial groups, with employees and brand reputation to consider. Some members of its board have called for tougher action: Dow said it would suspend all PAC contributions “To any member of Congress who voted to oppose the certification of the presidential election,” while IBM, which does not have a PAC, called for broader policy changes. But the group’s position maintains relations with Republicans in Congress as it lobbies on key issues such as corporate taxes. (The House noted that it had had discussions with “over 100” of its members about its decision.)
The debate on electoral matters as a business activity is not disappearing. Georgian lawmakers have approved voting restrictions which opponents say threaten democracy. Activists called on the business community to speak out against the legislation, although some major players – including Delta, a member of the House board of directors – have not done so.