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The year started with a bang and new all-time highs for the S&P 500 and the Nasdaq 100 but the enthusiasm was brought down to earth on Friday after the situation in the Middle East has escalated.
A few market developments that stood out last week:
- We saw a notable inflow in capital into emerging market stocks. The Chinese Internet ETF, KWEB gained more than 6% on Thursday and it managed to keep most of its gains during the pullback on Friday.
- Crude oil had a big 3% gap which might be the beginning of a new trend, especially if the situation in the East escalates. Gold has also been on the rise.
- Defense stocks ETF, XAR broke out to new all-time highs.
- Interest rates are going down which is good news for the our debt-ridden economy.
- Quite a few enterprise software stocks are setting up for a potential breakout: COUP, TWLO, AYX, etc.
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