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While the S&P 500 SPX, +0.87% and Nasdaq Composite COMP, +0.74% set new records on Monday with the $908 billion U.S. stimulus bill finally signed into law, there were a few segments not joining the party.
For one, the small-cap Russell 2000 RUT, -0.38% closed lower, following a three-month stretch in which that index has jumped 33%.
Another segment not participating in Monday’s rally were recent listings. The Renaissance IPO exchange-traded fund IPO, -4.70% stumbled nearly 5%. Analysts at Bespoke Investment Group point out that is the worst relative performance to the NYSE FANG+ index NYFANG, +1.60% — the grouping of Facebook FB, +3.59%, Amazon AMZN, +3.51%, Apple AAPL, +3.58%, Netflix NFLX, +1.00% and Google owner Alphabet GOOG, +2.14%, along with a few other technology giants including Alibaba BABA, +0.16% and Tesla TSLA, +0.29% — in its history.
Companies including exercise-bicycle maker Peloton Interactive PTON, -6.48%, Zoom Video Communications ZM, -6.34%, social-media site Pinterest PINS, -4.57%, and data-analytics provider Palantir Technologies PLTR, -7.64% each struggled.
“That’s by far the worst relative performance in the history of the NYSE FANG+ index, and may be a sign that the market is starting to re-evaluate aggressive bets on unproven companies that has also played out as part of the SPAC craze,” said the Bespoke analysts. SPACs are special-purpose acquisition companies, so-called blank check firms that intend to purchase other companies as a way of taking them public.
The Defiance Next Gen SPAC Derived ETF SPAK, -2.13%, with components including sports-betting firm DraftKings DKNG, -6.04% and spaceflight company Virgin Galactic SPCE, -7.39%, also closed lower on Monday.
The buzz
The House voted to override President Donald Trump’s veto of the defense bill, while Sen. Bernie Sanders threatened to filibuster a move to do so in the Senate unless a vote is taken on the $2,000 stimulus proposal that cleared the lower chamber.
Companies that have seen big stock-price declines may see more pressure in the coming days, as investors lock in losses for capital-gains tax purposes.
U.S. hospitalizations from COVID-19 set a record 121,235 on Monday, according to the COVID-19 tracking project. Deaths have tailed off significantly since Christmas, likely a function of holiday-reporting slowdowns.
More Israelis have received a vaccination than have contracted coronavirus, according to a government minister. In the U.S., 2.13 million people have received a dose, according to the Centers for Disease Control and Prevention, or 11% of the number who have contracted the disease.
The European Union and China are closing in on a trade deal that will give greater European access to Chinese manufacturing and greater Chinese access to the European energy space.
The market
U.S. stock futures ES00, +0.40% NQ00, +0.46% YM00, +0.43% pointed to further gains.
The FTSE 100 UKX, +2.04% rose sharply in London in its first action since the U.K. agreed to a trade deal with the European Union that will continue tariff-free access.
The dollar DXY, -0.35% was lower against key rivals, notably the euro EURUSD, +0.34%. The yield on the 10-year Treasury TMUBMUSD10Y, 0.946% was 0.94%. Bitcoin BTCUSD, +0.60% was trading below $27,000 in further turbulent action.
Random reads
A Japanese company, Sumitomo Forestry 1911, +0.23%, has started researching making wooden satellites to reduce space junk.
Two widowed penguins console each other looking at the Melbourne skyline.
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