Wall Street’s three main indexes rose last week after better-than-expected data was released from the US confirming the economy continues to recover from the pandemic. The country reported a decline in unemployment benefits and a 1% increase in durable goods, underscoring the improvements in April and May.
The prospect of a 6 bio. Joe Biden’s $ budget, which includes a large provision for infrastructure projects, is also good news for the stock market. On the flip side, the country reported that core PCE inflation rose to 3.1% y / y in April, which is much higher than expected.
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In early May, US politicians said they would focus on making the labor market fully recover, but the US Federal Reserve will likely have to tighten its ultra-loose monetary policy sooner than expected. Rising inflation in the US could weigh on investor confidence again, and stock market investors may feel more nervous in the coming days.
Investors may start selling tech-related companies amid concerns about rising interest rates, and this is probably not the best time to invest in Apple, Inc. (NASDAQ: AAPL), Facebook, Inc. (NASDAQ: FB), and Twitter Inc. (NYSE: TWTR) to invest.
Apple stocks have extended the correction from their record highs
Apple stock has extended the correction from its record highs above $ 140 in January 2021, and the current share price is $ 124.
Tech-wise, Apple stock could fall even further in the coming days; however, if the price jumps back above $ 130, the path to resistance at $ 140 is open.
Facebook stocks found strong support above $ 300
The current support levels are $ 320 and $ 300; $ 340 and $ 350 represent the resistance levels. If price bounces above the $ 340 resistance, the next target could be $ 350. However, if the price falls below $ 300, this would be a clear “sell” signal and perhaps a sign of a trend reversal.
Twitter stocks have stabilized above $ 50 support
Twitter stock has extended the correction from its record highs above $ 80 in February 2021, and is currently trading at around $ 58.
If the price falls below the $ 50 support again, that would be a clear sell signal and we have the way to the $ 40 support. On the other hand, if the price jumps above $ 65 it would be a signal to start trading Twitter stocks and the next target could be around $ 70.
Summary
Rising inflation in the US could shake investor confidence again, and this is probably not the best time to invest in Apple, Facebook, and Twitter. The prospect of a 6 bio. Joe Biden’s $ household still keeps the stock market in a positive mood, but the coming days could bring more nervousness to stock market investors.
