Regardless of the pandemic, stocks closed near session highs on Wednesday, July 8, and Zach Abraham, Chief Investment Officer and Principal at Bulwark Capital, says that the Fed is largely responsible. The stock market is just not paying attention to corporate revenues or earnings right now.
Apple hit a record high after a Deutsche Bank analyst hiked his price target on the stock. Fellow tech giants Microsoft, Netflix and Amazon also saw gains even as the number of coronavirus cases in the U.S. hit a new single-day high. Twitter stock also rose as their hint of rolling out a subscription service led investors to speculate that the company might better be able to monetize their social media platform, which Zach says they need to do.
In fact, the Federal Reserve is not going to stop; they are the biggest catalyst of stock rises the U.S. is seeing across the board. The stock market rally we are experiencing could roll on a lot longer as the Federal Reserve pulls out all the stops, including purchasing corporate bonds, lowering interest rates to near zero, and expanding its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support.
Watch the whole interview here: https://cheddar.com/media/stocks-close-near-session-highs-as-apple-sets-record