FTSE 100 and Dow surge as rotation trade gathers pace
|The FTSE 100 has gained 60 points today, while on Wall Street the Dow Jones has surged out of the gate, shrugging off weakness in tech stocks, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks rally – Except Big Tech
“Just as worries about poor market breadth hit the mainstream, breadth begins to recover. Last week saw Nvidia soar and the Nasdaq 100 hit 20,000, but the new week has continued where Friday left off, with old economy stocks rallying and tech continuing to drop back. This kind of rotation is very healthy for a continuation of the rally into July.”
FTSE 100 at two-week high
“Fresh inflows are driving the FTSE 100 higher too, and the gains are not confined to the UK. Political risk is off the agenda today it seems, as the CAC40 shrugs off impending French elections and the Dax makes gains too. Despite a lack of news today it seems that investors remain content to buy the dip.”
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