By Liz Moyer
Investing.com -- CBOE Volatility Index spiked 40% on Thursday amid a wave of selling that sent the major averages plunging.
Investors sold their tech shares and bought United States 10-Year U.S. bonds, sending the latter to their highest yield in more than a year. Risk-off dominated the markets.
Until now, investors had cheered positive news about vaccines and a decline in the spread of coronavirus as a sign the reopening trade was back on. Those trends have not gone away -- the Food and Drug Administration is expected to approve Johnson & Johnson (NYSE:JNJ)’s one-dose vaccine candidate for emergency use in the next couple of days.
As millions more vaccines spread out across the country, investors are warming to shares of airlines, travel companies, hotels and even movie theaters. The losers? Stay-at-home trades like Peloton Interactive Inc (NASDAQ:PTON) and Zoom Video Communications Inc (NASDAQ:ZM), which both fell on Thursday.
Will investors buy the dip as they have so many times in the recent past? They have one more day in February to make that trade.
Here are three things that could affect markets tomorrow:
1. Meme stocks have another rally
GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) -- two of the so-called meme stocks -- staged another rally on Thursday as the broader markets fell.
Another big day for GameStop followed a doubling in price on Wednesday. It was up another 59% on Thursday and investors will likely be watching to see if it can keep the momentum going through the end of the week.
AMC, which actually has positive news to point to -- NYC movie theaters reopen next week -- also climbed as much as 10% on Thursday before settling back. Its earnings after the closing bell could decide where its stock trades on Friday.
2. Personal income and spending
Personal income in January is expected to go up 9.5% compared to the 0.6% gain the prior month. Personal spending is seen increasing 2.5% for January after falling 0.2% in December. Both numbers come out Friday at 8:30 AM ET (1330 GMT).
3. Twitter and tech stocks
FANG names have dulled in the last few weeks despite multiple surges in the Dow that have set multiple records. It could be that with the focus on rising rates and the reopening trade, investors are finding shares of Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB) and Google’s Alphabet (NASDAQ:GOOGL) Inc Class C (NASDAQ:GOOG)richly priced compared to value sectors like energy and financials.
But not all tech stocks are on the out. Twitter Inc (NYSE:TWTR)rose 6% on Thursday to a record after it outlined plans to boost monetizable daily active users to 315 million by 2023 and double revenue in that year.