Stock Market Today: Market Retreat with Emerging Industry

August 17, 2023, 1:36 pm EDT

Market Retreat with Emerging Industry

The stock market kept retreating after reaching its peak about 3-4 weeks ago. Not only lost their short-term and medium-term trend lines for S&P-500 and Nasdaq, but they cannot also rebound. 

It illustrates the inflation threat is still there as the Fed chairman mentioned which means the rising rates policy could be resumed either this year or next year. The pressure is relieved temporarily through their effort on hiking the Fed fund rates. However, it does not seem to reach its goal of 2% soon. 

An overheated stock market that made more than +37% gains like Nasdaq has to pull back to digest the gains. 

Another potential problem in China, the second-largest economic country, could also trigger worries that its slowdown or financial crisis may spread out. 

However, we notice one specific industry that seems to emerge today during this pullback process. It is the COVID-related biotech or pharmaceutical companies:

  • BioNTech (BNTX): +3.8%
  • Moderna (MRNA): +5.8%
  • Pfizer (PFE): +2.2%

These stocks have been weak for 2023 due to the recovery from COVID-19 and economic reopening globally. But, nobody can guarantee that these fatal diseases would disappear completely. It is too early to judge if these stocks can keep climbing higher. But, it would be interesting in paying attention to their development at this moment. 

Share This Post
Have your say!

Leave a Reply