“Loving Last Week’s Reversal: Technology & Homebuilder Stocks Jump On Smart Money’s Bond Yield Play

It’s no surprise that Institutional investors love a reversal in bond yields — and last week, they proved it. While the Dow and S&P 500 inched their way higher last week, it was technology and homebuilder stocks that rose the most on the back of last week’s sudden drop in yields. These two sectors have become favorites among institutional investors of late, and last week’s rally showed just how much in demand these stocks are. Technology stocks have been the traditional favorites of investors for many years, and the recent rally in these stocks was just the latest example of the institutional investor’s appetite for tech. Companies such as Microsoft, Apple, and Amazon were all setting new records last week as bond yields reversed their recent upward trend. Homebuilder stocks also saw tremendous gains last week, which is indicative of a market that is beginning to show signs of recovery. Despite the uncertain economic environment, investors appear to be betting on the future of the housing market. Several homebuilders have already announced new projects, and that has been helping to push up these stocks. What’s more, last week’s interest rate drop is likely to spur further investment in these two sectors. Lower interest rates mean lower borrowing costs, which could make buying a home or investing in technology stocks even more attractive. Overall, last week’s reversal in bond yields was great news for technology and homebuilder stocks. Institutional investors have been looking for places to put their money, and these two sectors have been perfect candidates for their portfolios. With the recent drop in yields, investors are likely to continue to follow the smart money into these sectors in the coming weeks and months.