NYSE Dow Jones finished today at:

[bigdog]

Tech rout pulls Nasdaq down 3.5%, biggest loss since October

Rising bond yields triggered a broad sell-off on Wall Street Thursday that erased the market’s gains for the week and handed the Nasdaq composite its biggest loss in nearly four months.

The S&P 500 dropped 2.4%, led lower by heavy selling in technology and communications companies. The tech-heavy Nasdaq fell 3.5%, its biggest skid since October.

The sell-off took hold when the yield on the 10-year U.S. Treasury note rose to 1.53%, a level not seen in more than a year and far above the 0.92% level it was trading at only two months ago.

Bond yields have been rising this month, reflecting growing confidence among investors that the economy is on the path to recovery, but also concern that inflation is headed higher. And every tick up in bond yields recently has corresponded with a tick down in stock prices.

Thursday’s move in the 10-year Treasury yield raised the alarm on Wall Street that yields, and the interest rates they influence, will move higher from here.

“The yield on the 10-year note crossed the line in the sand at 1.50%, which from a technical perspective further confirms that higher rates are likely,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 index fell 96.09 points to 3,829.34. The Dow Jones Industrial Average lost 559.85 points, or 1.8%, to 31,402.01. The Nasdaq slid 478.54 points to 13,119.43.

The economy grew at an annual pace of 4.1% in the final three months of 2020, slightly faster than first estimated. The influx of new government stimulus efforts and accelerated vaccine distribution could lift growth in the current quarter, ending in March, to 5% or even higher, economists believe.

“The bond market is reacting to the positive economic growth,” said Brent Schutte, chief investment strategist, Northwestern Mutual Wealth Management Company. “It means there’s some hope on the horizon.”

Technology stocks, which tend to have higher valuations, have been one of the victims of the rise in bond yields. As bond yields climb, more investors shift money into those higher yielding assets, which tends to negatively impact stocks that are priced for growth and not for regular dividend payouts.

Apple, Amazon, Facebook and Microsoft — all companies that pushed the stock market higher last year — fell 2.4% or more.

The market will likely see broader growth as actual economic growth widens to include many of the sectors that have been beaten down during the pandemic, Schutte said.

Smaller company stocks fared worse than the rest of the market. The Russell 2000 index of smaller company stocks lost 84.21 points, or 3.7%, to 2,200.17. The index has been far outpacing larger indexes, a signal that investors expect broader growth to continue. Schutte noted improvements in retail sales, the housing market and consumer confidence.

“All those things are strong right now and the backdrop for further gains is still there,” Schutte said.

ASX 200 to give back its gains​

The Australian share market looks set to end the week on a disappointing note after a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open 70 points or 1% lower this morning.

On closing, the Dow Jones had fallen 1.75%, the S&P 500 is down 2.45%, and the Nasdaq index has sunk 3.52%. The latter could be bad news for Aussie tech shares today.

Asian shares sink after tech rout pulls Nasdaq 3.5% lower

Asian shares have skidded after a rout in technology companies pulled the Nasdaq 3.5% lower in the steepest loss for the tech-heavy index since October.

apnews.com

Tech rout pulls Nasdaq down 3.5%, biggest loss since October

By DAMIAN J. TROISE and ALEX VEIGA

Rising bond yields triggered a broad sell-off on Wall Street Thursday that erased the market’s gains for the week and handed the Nasdaq composite its biggest loss in nearly four months.

The S&P 500 dropped 2.4%, led lower by heavy selling in technology and communications companies. The tech-heavy Nasdaq fell 3.5%, its biggest skid since October.

The sell-off took hold when the yield on the 10-year U.S. Treasury note rose to 1.53%, a level not seen in more than a year and far above the 0.92% level it was trading at only two months ago.

Bond yields have been rising this month, reflecting growing confidence among investors that the economy is on the path to recovery, but also concern that inflation is headed higher. And every tick up in bond yields recently has corresponded with a tick down in stock prices.

Thursday’s move in the 10-year Treasury yield raised the alarm on Wall Street that yields, and the interest rates they influence, will move higher from here.

“The yield on the 10-year note crossed the line in the sand at 1.50%, which from a technical perspective further confirms that higher rates are likely,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 index fell 96.09 points to 3,829.34. The Dow Jones Industrial Average lost 559.85 points, or 1.8%, to 31,402.01. The Nasdaq slid 478.54 points to 13,119.43.

The economy grew at an annual pace of 4.1% in the final three months of 2020, slightly faster than first estimated. The influx of new government stimulus efforts and accelerated vaccine distribution could lift growth in the current quarter, ending in March, to 5% or even higher, economists believe.

“The bond market is reacting to the positive economic growth,” said Brent Schutte, chief investment strategist, Northwestern Mutual Wealth Management Company. “It means there’s some hope on the horizon.”

Technology stocks, which tend to have higher valuations, have been one of the victims of the rise in bond yields. As bond yields climb, more investors shift money into those higher yielding assets, which tends to negatively impact stocks that are priced for growth and not for regular dividend payouts.

Apple, Amazon, Facebook and Microsoft — all companies that pushed the stock market higher last year — fell 2.4% or more.

The market will likely see broader growth as actual economic growth widens to include many of the sectors that have been beaten down during the pandemic, Schutte said.

Smaller company stocks fared worse than the rest of the market. The Russell 2000 index of smaller company stocks lost 84.21 points, or 3.7%, to 2,200.17. The index has been far outpacing larger indexes, a signal that investors expect broader growth to continue. Schutte noted improvements in retail sales, the housing market and consumer confidence.

“All those things are strong right now and the backdrop for further gains is still there,” Schutte said.

Global stock markets have soared over the past six months on optimism about coronavirus vaccines and central bank promises of abundant credit to support struggling economies. Those sentiments have faltered due to warnings the rally might be too early and that inflation might rise.

On Wednesday, Federal Reserve Chair Jerome Powell affirmed the Fed’s commitment to low interest rates in a second day of testimony to legislators in Washington.

The central bank earlier indicated it would allow the economy to run hot to make sure a recovery is well-established following its deepest slump since the 1930s. Powell said it might take more than three years to hit the Fed’s target of 2% inflation.

Investors also are looking for Congress to approve President Joe Biden’s proposed economic aid plan. That includes $1,400 checks to most Americans. However, the plan faces staunch opposition from Republicans and is still subject to negotiations. Democrats have chosen to use the legislative process known as reconciliation that would allow them to pass the bill without GOP support.

GameStop jumped 18.6% a day after the video game retailer’s stock more than doubled. The stock has been mostly declining this month after skyrocketing 1,600% in January as a large group of investors on Reddit and other social media sites encouraged each other to drive up the shares at the expense of hedge funds betting the stock would go lower.

 

[bigdog]

A bumpy day leaves stocks mostly lower; bond yields ease

A choppy day on Wall Street ended with stocks mostly lower Friday, helping push the S&P 500 to its second straight weekly loss.

Investors continued to watch the bond market, where Treasury yields eased lower, as well as Washington, where Congress is expected to vote on President Joe Biden’s stimulus package.

Losses in banks and health care stocks helped drag the S&P 500 down 0.5%, erasing an early gain. Falling oil prices weighed on energy stocks. Technology and communication services companies, which bore the brunt of the selling a day before, recovered slightly, which helped the tech-heavy Nasdaq composite manage a 0.6% gain.

Bond yields eased off of their multi-week climb. The yield on the 10-year U.S. Treasury fell to 1.42% from 1.51%. late Thursday.

“We still think the uptrend in (stocks) is very much intact and that they’ll outperform bonds in the coming year,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 index fell 18.19 points to 3,811.15. Despite a two-week slide, the index managed a 2.6% gain for February after a 1.1% loss in January.

The Dow Jones Industrial Average dropped 469.64 points, or 1.5%, to 30,932.37. The Nasdaq gained 72.91 points to 13,192.34. The index still posted its biggest weekly loss since October. The Russell 2000 index of smaller companies eked out a small gain, adding 0.88 points, or less than 0.1%, to 2,201.05.

The indexes remain close to the all-time highs they set earlier this month.

A sell-off on Wall Street Thursday picked up speed when the yield on the 10-year U.S. Treasury note rose above 1.5%, a level not seen in more than a year and far above the 0.92% it was trading at only two months ago. That move raised the alarm that yields, and the interest rates they influence, will move higher from here.

The recent rise in bond yields reflects growing confidence that the economy is on the path to recovery, but also expectations that inflation is headed higher, which might prompt central banks eventually to raise interest rates to cool price increases. Rising yields can make stocks look less attractive relative to bonds, which is why every tick up in yields has corresponded with a tick down in stock prices.

“Investors should look at this as an affirmation that the recovery is taking hold,” Brian Levitt, Global Market Strategist at Invesco.

A choppy day on Wall Street ended with stocks mostly lower Friday, helping push the S&P 500 to its second straight weekly loss.

Investors continued to watch the bond market, where Treasury yields eased lower, as well as Washington, where Congress is expected to vote on President Joe Biden’s stimulus package.

Losses in banks and health care stocks helped drag the S&P 500 down 0.5%, erasing an early gain. Falling oil prices weighed on energy stocks. Technology and communication services companies, which bore the brunt of the selling a day before, recovered slightly, which helped the tech-heavy Nasdaq composite manage a 0.6% gain.

Bond yields eased off of their multi-week climb. The yield on the 10-year U.S. Treasury fell to 1.42% from 1.51%. late Thursday.

“We still think the uptrend in (stocks) is very much intact and that they’ll outperform bonds in the coming year,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 index fell 18.19 points to 3,811.15. Despite a two-week slide, the index managed a 2.6% gain for February after a 1.1% loss in January.

The Dow Jones Industrial Average dropped 469.64 points, or 1.5%, to 30,932.37. The Nasdaq gained 72.91 points to 13,192.34. The index still posted its biggest weekly loss since October. The Russell 2000 index of smaller companies eked out a small gain, adding 0.88 points, or less than 0.1%, to 2,201.05.

The indexes remain close to the all-time highs they set earlier this month.

A sell-off on Wall Street Thursday picked up speed when the yield on the 10-year U.S. Treasury note rose above 1.5%, a level not seen in more than a year and far above the 0.92% it was trading at only two months ago. That move raised the alarm that yields, and the interest rates they influence, will move higher from here

https://apnews.com/article/technolo...easury-notes-1de82d5a641a195712dfac026e21bee8

A bumpy day leaves stocks mostly lower; bond yields ease

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day on Wall Street ended with stocks mostly lower Friday, helping push the S&P 500 to its second straight weekly loss.

Investors continued to watch the bond market, where Treasury yields eased lower, as well as Washington, where Congress is expected to vote on President Joe Biden’s stimulus package.

Losses in banks and health care stocks helped drag the S&P 500 down 0.5%, erasing an early gain. Falling oil prices weighed on energy stocks. Technology and communication services companies, which bore the brunt of the selling a day before, recovered slightly, which helped the tech-heavy Nasdaq composite manage a 0.6% gain.

Bond yields eased off of their multi-week climb. The yield on the 10-year U.S. Treasury fell to 1.42% from 1.51%. late Thursday.

“We still think the uptrend in (stocks) is very much intact and that they’ll outperform bonds in the coming year,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 index fell 18.19 points to 3,811.15. Despite a two-week slide, the index managed a 2.6% gain for February after a 1.1% loss in January.

The Dow Jones Industrial Average dropped 469.64 points, or 1.5%, to 30,932.37. The Nasdaq gained 72.91 points to 13,192.34. The index still posted its biggest weekly loss since October. The Russell 2000 index of smaller companies eked out a small gain, adding 0.88 points, or less than 0.1%, to 2,201.05.

The indexes remain close to the all-time highs they set earlier this month.

A sell-off on Wall Street Thursday picked up speed when the yield on the 10-year U.S. Treasury note rose above 1.5%, a level not seen in more than a year and far above the 0.92% it was trading at only two months ago. That move raised the alarm that yields, and the interest rates they influence, will move higher from here.

The recent rise in bond yields reflects growing confidence that the economy is on the path to recovery, but also expectations that inflation is headed higher, which might prompt central banks eventually to raise interest rates to cool price increases. Rising yields can make stocks look less attractive relative to bonds, which is why every tick up in yields has corresponded with a tick down in stock prices.

“Investors should look at this as an affirmation that the recovery is taking hold,” Brian Levitt, Global Market Strategist at Invesco.

A choppy day on Wall Street ended with stocks mostly lower Friday, helping push the S&P 500 to its second straight weekly loss.

Investors continued to watch the bond market, where Treasury yields eased lower, as well as Washington, where Congress is expected to vote on President Joe Biden’s stimulus package.

Losses in banks and health care stocks helped drag the S&P 500 down 0.5%, erasing an early gain. Falling oil prices weighed on energy stocks. Technology and communication services companies, which bore the brunt of the selling a day before, recovered slightly, which helped the tech-heavy Nasdaq composite manage a 0.6% gain.

Bond yields eased off of their multi-week climb. The yield on the 10-year U.S. Treasury fell to 1.42% from 1.51%. late Thursday.

“We still think the uptrend in (stocks) is very much intact and that they’ll outperform bonds in the coming year,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 index fell 18.19 points to 3,811.15. Despite a two-week slide, the index managed a 2.6% gain for February after a 1.1% loss in January.

The Dow Jones Industrial Average dropped 469.64 points, or 1.5%, to 30,932.37. The Nasdaq gained 72.91 points to 13,192.34. The index still posted its biggest weekly loss since October. The Russell 2000 index of smaller companies eked out a small gain, adding 0.88 points, or less than 0.1%, to 2,201.05.

The indexes remain close to the all-time highs they set earlier this month.

A sell-off on Wall Street Thursday picked up speed when the yield on the 10-year U.S. Treasury note rose above 1.5%, a level not seen in more than a year and far above the 0.92% it was trading at only two months ago. That move raised the alarm that yields, and the interest rates they influence, will move higher from here.

The recent rise in bond yields reflects growing confidence that the economy is on the path to recovery, but also expectations that inflation is headed higher, which might prompt central banks eventually to raise interest rates to cool price increases. Rising yields can make stocks look less attractive relative to bonds, which is why every tick up in yields has corresponded with a tick down in stock prices.

“Investors should look at this as an affirmation that the recovery is taking hold,” Brian Levitt, Global Market Strategist at Invesco.

Samana said he still expects interest rates will continue to rise, but at a slower pace.

Technology stocks have been impacted more than the broader market by the rise in bond yields. Tech stocks tend to trade at higher valuations than the overall market. Investors are also betting that with vaccinations, the coronavirus pandemic may be coming to an end which would pivot consumer behavior away from online-only shopping.

In Washington, Democrats in Congress are preparing to move forward with President Biden’s $1.9 trillion stimulus package, with a vote in the House of Representatives planned for Friday. The Senate could vote on the package as early as next week.

The stimulus bill would include yet another round of one-time payments to most Americans, including an expansion of other refundable tax credits like the child tax credit, as well as additional aid to state and local governments to combat the pandemic.

Samana said he still expects interest rates will continue to rise, but at a slower pace.

Technology stocks have been impacted more than the broader market by the rise in bond yields. Tech stocks tend to trade at higher valuations than the overall market. Investors are also betting that with vaccinations, the coronavirus pandemic may be coming to an end which would pivot consumer behavior away from online-only shopping.

In Washington, Democrats in Congress are preparing to move forward with President Biden’s $1.9 trillion stimulus package, with a vote in the House of Representatives planned for Friday. The Senate could vote on the package as early as next week.

The stimulus bill would include yet another round of one-time payments to most Americans, including an expansion of other refundable tax credits like the child tax credit, as well as additional aid to state and local governments to combat the pandemic.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to bounce back on Monday. According to the latest SPI futures, the ASX 200 is expected to open the week 29 points or 0.45% higher this morning.

On Wall Street on Friday night, the Dow Jones fell 1.5%, the S&P 500 dropped 0.48%, and the Nasdaq index was up 0.56%.

 

[bigdog]

Stocks rally on Wall Street, S&P 500 has best day since June

Wall Street kicked off March with a broad rally Monday that sent the Dow Jones Industrial Average more than 600 points higher and gave the S&P 500 its best day in nine months.

The S&P 500 climbed 2.4%, clawing back nearly all of its losses from last week. More than 90% of the stocks in the benchmark index rose, with technology, financial and industrial companies powering a big share of the S&P 500′s gains. Small company stocks also had a strong showing as they continue to outpace the broader market this year.

The wave of buying came as investors welcomed a move lower in long-term interest rates as U.S. bond yields declined after surging in recent weeks. The yield on the 10-year Treasury fell to 1.43% after reaching its highest level in more than a year last week.

Higher interest rates can slow the economy and discourage borrowing, so Wall Street gets jittery when there’s a big surge in rates.

“It moved really fast, the interest rate rise, and now it’s sort of leveling out so people are relieved that it’s not continuing to move up at a really fast pace,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 rose 90.67 points to 3,901.82, it’s biggest single-day gain since June 5. The Dow gained 603.14 points, or about 2%, to 31,535.51. The tech-heavy Nasdaq composite climbed 396.48 points, or 3%, to 13,588.83.

Smaller company stocks continued to rally, a sign that investors are feeling more confident about the economy’s prospects for growth. The Russell 2000 index picked up 74.27 points, or 3.4%, to 2,275.32.

After a strong start to the month, stocks turned lower in the last couple of weeks of February after a sudden, rapid rise in bond yields fueled concerns about higher inflation. The yield on the 10-year Treasury note climbed as high as 1.5% last week, the highest level in more than a year, before easing Friday.

Bond yields, which can influence rates on mortgages and many other kinds of loans, have been steadily climbing this year, as investors bet that vaccination efforts and more government stimulus will lead to strong economic growth this year. However, along with strong economic growth comes concerns of inflation.

A handful high-level officials with the Federal Reserve will make speeches this week, which will give investors additional information on how concerned the nation’s central bank is about the economy and inflation. Lael Brainard, an advocate for looser monetary policies, will give a monetary policy speech on Tuesday and Fed Chair Jerome Powell will give a speech on Thursday.

ASX 200 expected to rise again​

It looks set to be another positive day for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 53 points or 0.8% higher this morning.

This follows a fantastic start to the week on Wall Street, which on closing sees the Dow Jones up 1.95%, the S&P 500 up 2.38%, and the Nasdaq index trading 3.01% higher.

https://apnews.com/article/joe-bide...andemic-asia-9606d330cbfbfec05987a0069d9e317f

Stocks rally on Wall Street, S&P 500 has best day since June

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street kicked off March with a broad rally Monday that sent the Dow Jones Industrial Average more than 600 points higher and gave the S&P 500 its best day in nine months.

The S&P 500 climbed 2.4%, clawing back nearly all of its losses from last week. More than 90% of the stocks in the benchmark index rose, with technology, financial and industrial companies powering a big share of the S&P 500′s gains. Small company stocks also had a strong showing as they continue to outpace the broader market this year.

The wave of buying came as investors welcomed a move lower in long-term interest rates as U.S. bond yields declined after surging in recent weeks. The yield on the 10-year Treasury fell to 1.43% after reaching its highest level in more than a year last week.

Higher interest rates can slow the economy and discourage borrowing, so Wall Street gets jittery when there’s a big surge in rates.

“It moved really fast, the interest rate rise, and now it’s sort of leveling out so people are relieved that it’s not continuing to move up at a really fast pace,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 rose 90.67 points to 3,901.82, it’s biggest single-day gain since June 5. The Dow gained 603.14 points, or about 2%, to 31,535.51. The tech-heavy Nasdaq composite climbed 396.48 points, or 3%, to 13,588.83.

Smaller company stocks continued to rally, a sign that investors are feeling more confident about the economy’s prospects for growth. The Russell 2000 index picked up 74.27 points, or 3.4%, to 2,275.32.

After a strong start to the month, stocks turned lower in the last couple of weeks of February after a sudden, rapid rise in bond yields fueled concerns about higher inflation. The yield on the 10-year Treasury note climbed as high as 1.5% last week, the highest level in more than a year, before easing Friday.

Bond yields, which can influence rates on mortgages and many other kinds of loans, have been steadily climbing this year, as investors bet that vaccination efforts and more government stimulus will lead to strong economic growth this year. However, along with strong economic growth comes concerns of inflation.

A handful high-level officials with the Federal Reserve will make speeches this week, which will give investors additional information on how concerned the nation’s central bank is about the economy and inflation. Lael Brainard, an advocate for looser monetary policies, will give a monetary policy speech on Tuesday and Fed Chair Jerome Powell will give a speech on Thursday.

Investors also had their eye on Washington Monday as a big economic stimulus bill advanced to the Senate. The House of Representatives approved Biden’s $1.9 trillion pandemic relief bill on Friday. The bill infuses cash across the struggling economy to individuals, businesses, schools, states and cities battered by COVID-19.

The stimulus bill would include yet another round of one-time payments to most Americans, including an expansion of other refundable tax credits like the child tax credit, and additional aid to state and local governments to combat the pandemic.

Johnson & Johnson rose 0.5% after the Food and Drug Administration gave approval for the company’s own coronavirus vaccine, one that does not require extensive refrigeration like the ones made by Moderna and Pfizer.

Technology and financial companies made some of the biggest gains. Apple surged 5.4% and Citigroup rose 5.6%. Companies that rely on consumer spending also fared well. Etsy jumped 11% and cosmetics retailer Ulta Beauty gained 4.7%.

Industrial companies, including airlines beaten down by the virus pandemic, also helped boost the broader market. American Airlines rose 1.1%.

Investors will get several big economic reports this week, including February’s jobs report on Friday. On Monday a report on manufacturing came in better than expectations, and new orders also came in better than expected.

 

[bigdog]

Stocks drift lower on Wall Street; yields continue to ease

Stocks closed broadly lower on Wall Street Tuesday, giving back some of their big gains from a day earlier.

The S&P 500 fell 0.8% after earlier flipping between small gains and losses. A day before, the benchmark index had leaped 2.4% for its best performance since June. Technology and internet stocks accounted for much of the selling, a reversal from a day earlier.

For weeks, investors have been focused on the bond market, where a swift recent rise in interest rates is threatening one of the main reasons for the stock market’s run to records through the pandemic. Bond yields eased across the board Tuesday, but expectations for stronger economic growth in coming months continue to fuel worries that interest rates will head higher.

Higher rates force investors to rethink how much they’re willing to pay for stocks, making each $1 of profit that companies earn a little less valuable. That’s making Wall Street reconsider the value of technology stocks, in large part because their recent dominance left them looking even pricier than the rest of the market.

“Valuations have just become problematic across certain pockets of the U.S. (stock) market and investors are starting to realize that,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 fell 31.53 points to 3,870.29. The Dow Jones Industrial Average lost 143.99 points, or 0.5%, to 31,391.52. The tech-heavy Nasdaq composite dropped 230.04 points, or 1.7%, to 13,358.79.

Smaller companies fared worse than the rest of the market. The Russell 2000 small-cap index gave up 43.81 points, or 1.9%, to 2,231.51.

Treasury yields have been climbing with expectations for economic growth and inflation, and such a rise makes borrowing more expensive for homebuyers, companies taking out loans and virtually everyone else. That can slow economic growth.

The yield on the 10-year Treasury eased a bit Tuesday, falling to 1.41% from 1.44% late Monday. It’s a reprieve following weeks of relentless rising. The 10-year yield had crossed above 1.50% last week, up from roughly 0.90% at the start of the year, and the zoom higher raised worries that more increases would destabilize the market.

Investors should be prepared for more risks in sectors that have driven the market’s growth through the pandemic because of more inflation, according to Cliff Hodge, chief investment officer of Cornerstone Wealth.

“What’s gotten us here is not likely to get us where we want to be going forward,” he said.

Tech stocks were weak again on Tuesday, with those in the S&P 500 falling 1.6%. But strategists along Wall Street remain fairly optimistic, saying stocks in other areas of the market are likely to rise with expectations for the economy’s improvement later this year. Gains for banks, energy producers and other companies whose profits are closely tied to the economy’s strength can help offset a pullback for tech stocks, which had been driving the market for years, the thinking goes.

ASX 200 futures pointing higher​

It looks set to be a better day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% higher.
On closing on Wall Street, the Dow Jones was down 0.46%, the S&P 500 is down 0.81%, and the Nasdaq index is 1.69% lower.

https://apnews.com/article/financia...yo-hong-kong-14021e11828575e4bf6a67c92b1249ae

Stocks drift lower on Wall Street; yields continue to ease

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Stocks closed broadly lower on Wall Street Tuesday, giving back some of their big gains from a day earlier.

The S&P 500 fell 0.8% after earlier flipping between small gains and losses. A day before, the benchmark index had leaped 2.4% for its best performance since June. Technology and internet stocks accounted for much of the selling, a reversal from a day earlier.

For weeks, investors have been focused on the bond market, where a swift recent rise in interest rates is threatening one of the main reasons for the stock market’s run to records through the pandemic. Bond yields eased across the board Tuesday, but expectations for stronger economic growth in coming months continue to fuel worries that interest rates will head higher.

Higher rates force investors to rethink how much they’re willing to pay for stocks, making each $1 of profit that companies earn a little less valuable. That’s making Wall Street reconsider the value of technology stocks, in large part because their recent dominance left them looking even pricier than the rest of the market.

“Valuations have just become problematic across certain pockets of the U.S. (stock) market and investors are starting to realize that,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 fell 31.53 points to 3,870.29. The Dow Jones Industrial Average lost 143.99 points, or 0.5%, to 31,391.52. The tech-heavy Nasdaq composite dropped 230.04 points, or 1.7%, to 13,358.79.

Smaller companies fared worse than the rest of the market. The Russell 2000 small-cap index gave up 43.81 points, or 1.9%, to 2,231.51.

Treasury yields have been climbing with expectations for economic growth and inflation, and such a rise makes borrowing more expensive for homebuyers, companies taking out loans and virtually everyone else. That can slow economic growth.

The yield on the 10-year Treasury eased a bit Tuesday, falling to 1.41% from 1.44% late Monday. It’s a reprieve following weeks of relentless rising. The 10-year yield had crossed above 1.50% last week, up from roughly 0.90% at the start of the year, and the zoom higher raised worries that more increases would destabilize the market.

Investors should be prepared for more risks in sectors that have driven the market’s growth through the pandemic because of more inflation, according to Cliff Hodge, chief investment officer of Cornerstone Wealth.

“What’s gotten us here is not likely to get us where we want to be going forward,” he said.

Tech stocks were weak again on Tuesday, with those in the S&P 500 falling 1.6%. But strategists along Wall Street remain fairly optimistic, saying stocks in other areas of the market are likely to rise with expectations for the economy’s improvement later this year. Gains for banks, energy producers and other companies whose profits are closely tied to the economy’s strength can help offset a pullback for tech stocks, which had been driving the market for years, the thinking goes.

Zoom Video Communications, the company whose software helps students and workers around the world talk with each other from a distance, fell 9% as concerns over slower subscriber growth offset its otherwise solid quarterly financial report and forecast.

Rocket Cos. soared 71.2%, the latest stock to be hyped in the same online forum that fueled the sharp rise in GameStop and other stocks in January. Shares in Rocket were among the most being “shorted” by hedge funds, according to FactSet. When an investor shorts a stock, they’re betting that its price will go lower.

The company, which operates several personal finance brands, including Rocket Mortgage, said last week that its revenue more than doubled in the fourth-quarter, reflecting strong growth across all its businesses.

Tuesday’s modest moves may prove short-lived. Several speeches and data reports this week could offer more light on the direction of interest rates.

On Tuesday, Federal Reserve Governor Lael Brainard sought to calm financial markets by emphasizing that the Fed, while generally optimistic about the economy, is still far from raising interest rates or reducing its $120 billion a month in asset purchases.

She also said that the Fed is closely monitoring the recent rise in the 10-year Treasury yield and an increase in investors’ inflation expectations. But she repeatedly said the economy is 10 million jobs short of its pre-pandemic level and the Fed would keep rates at nearly zero until the job market has fully recovered.

“We’ve got some distance to go to meet our goals,” of higher inflation and lower unemployment, Brainard said.

Federal Reserve Chair Jerome Powell is scheduled to speak on Thursday, and at the end of the week will be the government’s jobs report, which is typically the highlight economic report of every month. It also includes numbers for how much wages are rising across the economy, a key component of inflation.

Worries have been rising in recent months that inflation could be headed higher as COVID-19 vaccines get the economy back to strong growth and Washington gets close to delivering another $1.9 trillion in aid for the economy.

 

[bigdog]

Technology stocks lead indexes lower as yields resume climb

Stocks closed lower Wednesday as another rise in bond yields fueled concerns on Wall Street that higher inflation is on the way as the economy picks up.

The S&P 500 dropped 1.3%, shedding an early gain. The pullback is the benchmark index’s second straight loss after clocking its best day in nine months on Monday. Technology companies bore the brunt of the selling, pulling the S&P 500′s tech sector down 2.5%. Microsoft and Apple were both fell more than 2%.

U.S. government bond yields rose after easing a day earlier. The yield on the benchmark 10-year Treasury note climbed to 1.47% from 1.41%.

When bond yields rise quickly, as they have in recent weeks, it forces Wall Street to rethink the value of stocks, making each $1 of profit that companies earn a little less valuable. Technology stocks are most vulnerable to this reassessment, in large part because their recent dominance left them looking even pricier than the rest of the market.

On the flipside, banks benefit when bond yields rise, because it allows them to charge higher rates on mortgages and many other kinds of loans. Financial sector stocks were among the biggest gainers Wednesday. Bank of America and Citigroup added more than 2%.

“The good news to remember is there are other groups taking the baton,” said Ryan Detrick, chief investment strategist for LPL Financial, referring to banks and energy companies benefiting from higher rates, even as tech stocks take a hit.

The S&P 500 dropped 50.57 points to 3,819.72. The Dow Jones Industrial Average slipped 121.43 points, or 0.4%, to 31,270.09. The technology-heavy Nasdaq composite lost 361.04 points, or 2.7%, to 12,997.75.

Traders also sold off smaller company stocks, dragging down the Russell 2000 index 23.72 points, or 1.1%, to 2,207.79.

Wall Street continues to look to Washington, where economic data, comments out of the Federal Reserve and President Joe Biden’s stimulus package remain front and center. Treasury yields hit the psychologically important 1.50% mark last week as investors braced for stronger economic growth but also a possible increase in inflation.

“Some higher inflation at the beginning of a new economic expansion is perfectly normal,” Detrick said.

On Tuesday, Federal Reserve Governor Lael Brainard sought to calm financial markets by emphasizing that the Fed, while generally optimistic about the economy, is still far from raising interest rates or reducing its $120 billion a month in asset purchases.

ASX 200 futures pointing lower​

The Australian share market could give back some of its gains on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day 7 points lower.

On Wall Street closing; the Dow Jones was down 0.39%, the S&P 500 down 1.31%, and the Nasdaq index tumbled 2.7% lower. Rising bond yields are spooking investors once again.

https://apnews.com/article/joe-bide...-seoul-tokyo-4115f1be0b67672431fded5908d1848d

Technology stocks lead indexes lower as yields resume climb

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower Wednesday as another rise in bond yields fueled concerns on Wall Street that higher inflation is on the way as the economy picks up.

The S&P 500 dropped 1.3%,shedding an early gain. The pullback is the benchmark index’s second straight loss after clocking its best day in nine months on Monday. Technology companies bore the brunt of the selling, pulling the S&P 500′s tech sector down 2.5%. Microsoft and Apple were both fell more than 2%.

U.S. government bond yields rose after easing a day earlier. The yield on the benchmark 10-year Treasury note climbed to 1.47% from 1.41%.

When bond yields rise quickly, as they have in recent weeks, it forces Wall Street to rethink the value of stocks, making each $1 of profit that companies earn a little less valuable. Technology stocks are most vulnerable to this reassessment, in large part because their recent dominance left them looking even pricier than the rest of the market.

On the flipside, banks benefit when bond yields rise, because it allows them to charge higher rates on mortgages and many other kinds of loans. Financial sector stocks were among the biggest gainers Wednesday. Bank of America and Citigroup added more than 2%.

“The good news to remember is there are other groups taking the baton,” said Ryan Detrick, chief investment strategist for LPL Financial, referring to banks and energy companies benefiting from higher rates, even as tech stocks take a hit.

The S&P 500 dropped 50.57 points to 3,819.72. The Dow Jones Industrial Average slipped 121.43 points, or 0.4%, to 31,270.09. The technology-heavy Nasdaq composite lost 361.04 points, or 2.7%, to 12,997.75.

Traders also sold off smaller company stocks, dragging down the Russell 2000 index 23.72 points, or 1.1%, to 2,207.79.

Wall Street continues to look to Washington, where economic data, comments out of the Federal Reserve and President Joe Biden’s stimulus package remain front and center. Treasury yields hit the psychologically important 1.50% mark last week as investors braced for stronger economic growth but also a possible increase in inflation.

“Some higher inflation at the beginning of a new economic expansion is perfectly normal,” Detrick said.

On Tuesday, Federal Reserve Governor Lael Brainard sought to calm financial markets by emphasizing that the Fed, while generally optimistic about the economy, is still far from raising interest rates or reducing its $120 billion a month in asset purchases.

Federal Reserve Chair Jay Powell will speak Thursday on monetary policy. Investors heard from him last week when he testified in front of Congress, but the format — a question-and-answer session with The Wall Street Journal — is likely to be more illuminating than Powell’s calculated answers to politicians.

Investors are looking ahead to the February jobs report on Friday. Economists surveyed by FactSet expect employers created 225,000 jobs last month. The report also includes numbers for how much wages are rising across the economy, a key component of inflation.

Overall, the economic outlook has been brightening in recent weeks following a surprisingly strong retail sales report which showed that $600 stimulus payments approved in late December had translated into a January jump in retail sales that was the strongest since June.

With prospects rising for passaged of President Biden’s $1.9 trillion COVID-19 relief package with $1,400 individual payments and good news on vaccine distribution, private forecasters have been busy revising upward their economic forecasts.

Many believe the economy this year could see a rebound with growth coming in at the strongest pace since 1984. That would mark a significant rebound from last year when the economy contracted by the largest amount since 1946.

 

[over9k]

Yeah, everyone are bricking it about inflation. As I pointed out in the economic implications of coronavirus thread, it's a supply side issue. People are still buying stuff but shipping can't keep up and there's a lot of people off work sick with the virus. Combine that with the semiconductor shortage and you have producers literally unable to produce a lot of stuff (or at least, working at a reduced capacity).

This will all calm down steadily as more & more people get vaccinated and can go back to work and start making stuff again.

 

[over9k]

Here we go, here's a quick & dirty two minute summary:




This is just chips though, the same problem is occurring much wider scale on all kinds of other goods (commodities in particular) due to the very simple fact that all the people who actually make the stuff are off work sick and/or in quarantine.

As usual, if you want to know what's going to happen next, ask the virus.

 

[bigdog]

Tech pulls stocks lower as bond yields continue upward march

Technology companies led another broad sell-off on Wall Street Thursday as a spike in bond yields put more pressure on the market’s high-flying stocks.

The S&P 500 was fell 1.3%, its third straight loss. The benchmark index, which briefly dipped into the red for the year, is on track for its third consecutive weekly loss. Just four days ago it notched its biggest gain since June. That market rally was driven by what now appears to be a brief pause in the recent, swift rise in bond yields, which in turn pushes up interest rates on loans for consumers and businesses.

The latest losses came as the yield on the 10-year Treasury rose sharply during a question-and-answer session with Federal Reserve Chair Jerome Powell during which Powell said inflation will likely pick up in the coming months. He cautioned that the increase will be temporary, and won’t be enough for the Fed to alter its low-interest rate policies.

The remarks, signaling a wait-and-see stance on the surge in bond yields, failed to ease investors’ concerns that stronger growth will lead to higher inflation, which unchecked can slow economic growth.

“You have a context where rates have moved quite rapidly the last few days, so the market is generally on edge and looking for more reassurance in the short term,” said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management.

The S&P 500 fell 51.25 points to 3,768.47. The Dow Jones Industrial Average lost 345.95 points, or 1.1%, to 30,924.14. The Nasdaq composite dropped 274.28 points, or 2.1%, to 12,723.47. The pullback knocked the tech-heavy index into the red for the year.

Small-company stocks fell even more. The Russell 2000 index of smaller companies gave up 60.87 points, or 2.8%, to 2,146.92.

As the economy reopens this spring and summer, and vaccines are distributed and the coronavirus retreats, many economists expect a spending boom that will stretch available supplies of goods and services. That will likely push up prices, Powell said Thursday.

Even so, Powell gave no hint that the Fed would take steps to keep longer-term interest rates in check, such as by shifting some of its $80 billion in monthly Treasury purchases to longer-term securities.

“We think our current policy stance is appropriate,” he said.

ASX 200 to fall again​

It looks set to be a disappointing finish to the week for the ASX 200 on Friday. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower.

Wall Street on closing, saw all three major indices deep in the red. The Dow Jones was down 1.11%, the S&P 500 1.34% lower, and the Nasdaq index has fallen 2.11%.

https://apnews.com/article/stocks-trade-mixed-jerome-powell-remarks-eb580eb76f8d45fc3454795f14ce21e3

Tech pulls stocks lower as bond yields continue upward march

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led another broad sell-off on Wall Street Thursday as a spike in bond yields put more pressure on the market’s high-flying stocks.

The S&P 500 was fell 1.3%, its third straight loss. The benchmark index, which briefly dipped into the red for the year, is on track for its third consecutive weekly loss. Just four days ago it notched its biggest gain since June. That market rally was driven by what now appears to be a brief pause in the recent, swift rise in bond yields, which in turn pushes up interest rates on loans for consumers and businesses.

The latest losses came as the yield on the 10-year Treasury rose sharply during a question-and-answer session with Federal Reserve Chair Jerome Powell during which Powell said inflation will likely pick up in the coming months. He cautioned that the increase will be temporary, and won’t be enough for the Fed to alter its low-interest rate policies.

The remarks, signaling a wait-and-see stance on the surge in bond yields, failed to ease investors’ concerns that stronger growth will lead to higher inflation, which unchecked can slow economic growth.

“You have a context where rates have moved quite rapidly the last few days, so the market is generally on edge and looking for more reassurance in the short term,” said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management.

The S&P 500 fell 51.25 points to 3,768.47. The Dow Jones Industrial Average lost 345.95 points, or 1.1%, to 30,924.14. The Nasdaq composite dropped 274.28 points, or 2.1%, to 12,723.47. The pullback knocked the tech-heavy index into the red for the year.

Small-company stocks fell even more. The Russell 2000 index of smaller companies gave up 60.87 points, or 2.8%, to 2,146.92.

As the economy reopens this spring and summer, and vaccines are distributed and the coronavirus retreats, many economists expect a spending boom that will stretch available supplies of goods and services. That will likely push up prices, Powell said Thursday.

Even so, Powell gave no hint that the Fed would take steps to keep longer-term interest rates in check, such as by shifting some of its $80 billion in monthly Treasury purchases to longer-term securities.

“We think our current policy stance is appropriate,” he said.

The yield on the 10-year Treasury note jumped to 1.54% during Powell’s remarks, from 1.47% just before, a significant move. At the beginning of the year the yield was trading at 0.93%.

Investors have been keeping a close eye on the bond market in recent weeks, where yields have been rising along with expectations that the economy, and possibly inflation, could be set to pick up as vaccinations increase and coronavirus restrictions on businesses, travel and schooling begin to lift more.

When yields rise quickly, it forces Wall Street to rethink the value of stocks. Technology stocks are most vulnerable to this reassessment after having soared during the pandemic, making them look pricier than the rest of the market. Bank stocks, in contrast, tend to do better when bond yields are rising because higher yields mean banks can charge higher rates on mortgages and other loans.

“You’re having a fairly healthy and natural consolidation period,” said Mark Hackett, chief of investment research at Nationwide.

Wall Street has been anticipating an improving economy since late last year from the eventual distribution of vaccines, additional stimulus and a steadier reopening, he said.

“The market tends to do better when the good news is further out and struggle more when it is in hand,” he said. “There’s really nothing currently as the next catalyst.”

The price of U.S. crude oil jumped 4.2% after OPEC members agreed to leave most of their existing oil production cuts in place. That helped send energy company stocks broadly higher. Exxon Mobil rose 3.9% and ConocoPhillips rose 3.7%.

The Senate is moving forward with President Joe Biden’s stimulus bill, with most of the negotiations now happening between the more moderate Democrats in the Senate and the White House.

Investors were also looking ahead to the February jobs report on Friday. Economists surveyed by FactSet expect employers created 225,000 jobs last month. The report also includes numbers for how much wages are rising across the economy, a key component of inflation.

 

[bigdog]

Tech rebound pulls stocks out of a slump and to weekly gain

Wall Street capped a volatile day of trading Friday with a broad rally that snapped the market’s three-day losing streak.

The S&P 500 gained 2% after clawing back from a 1% skid that followed a 1% surge at the start of trading. Other stock indexes went through similar zigzags, but finished with solid gains.

The late-afternoon turnaround made up for some of the losses that the market began racking up after kicking off the week with the S&P 500′s biggest gain since June. The index, which briefly slipped into the red for the year on Thursday, managed to end the week 0.8% higher, its first weekly gain in three weeks.

The market’s latest gyrations came as investors struggled to figure out what an encouraging report on the economy and the recent march higher for bond yields should mean for the market.

“Ultimately, investors will conclude that they’ll be happy to take the bad with the good,” said Sam Stovall, chief investment strategist at CFRA. “The bad thing being higher interest rates and the good being an improvement in the economy.”

The S&P 500 rose 73.47 points to 3,841.94. The Dow Jones Industrial Average gained 572.16 points, or 1.9%, to 31,496.30. Earlier, it had been down 157 points. The Nasdaq composite climbed 196.68 points, or 1.6%, to 12,920.15. The tech-heavy index earlier flipped between a gain of 1.2% and a loss of 2.6%.

Smaller company stocks outgained the broader market, as they have all year. The Russell 2000 index picked up 45.29 points, or 2.1%, to 2,192.21.

Tech stocks and other high-growth companies in particular have been at the center of the downdraft. They soared more than the rest of the market for much of the pandemic, and in the years preceding it. On Friday, Tesla was the heaviest weight dragging on the S&P 500. The stock fell 3.8% and is now down 15.3% so far this year.

By Friday afternoon, the vast majority of stocks in the S&P 500 had rebounded. Energy producers made some of the largest gains. Diamondback Energy jumped 4.9%, and Chevron gained 4.3% after the price of U.S. crude oil rallied 3.5%.

Tech stocks would likely also see some improvement in their profits, just not to the same degree as companies whose businesses are closely tied to the strength of the economy, such as banks or travel companies.

But Big Tech stocks have grown so big that their movements can mask what’s going on in the broad market. Five Big Tech stocks alone make up more than 21% of the S&P 500 by market value, so weakness for tech can hold back S&P 500 index funds even if many stocks within it are rising.

https://apnews.com/article/technolo...erome-powell-759ee208212c2a65d5f397b8eb499167

Tech rebound pulls stocks out of a slump and to weekly gain

By ALEX VEIGA

Wall Street capped a volatile day of trading Friday with a broad rally that snapped the market’s three-day losing streak.

The S&P 500 gained 2% after clawing back from a 1% skid that followed a 1% surge at the start of trading. Other stock indexes went through similar zigzags, but finished with solid gains.

The late-afternoon turnaround made up for some of the losses that the market began racking up after kicking off the week with the S&P 500′s biggest gain since June. The index, which briefly slipped into the red for the year on Thursday, managed to end the week 0.8% higher, its first weekly gain in three weeks.

The market’s latest gyrations came as investors struggled to figure out what an encouraging report on the economy and the recent march higher for bond yields should mean for the market.

“Ultimately, investors will conclude that they’ll be happy to take the bad with the good,” said Sam Stovall, chief investment strategist at CFRA. “The bad thing being higher interest rates and the good being an improvement in the economy.”

The S&P 500 rose 73.47 points to 3,841.94. The Dow Jones Industrial Average gained 572.16 points, or 1.9%, to 31,496.30. Earlier, it had been down 157 points. The Nasdaq composite climbed 196.68 points, or 1.6%, to 12,920.15. The tech-heavy index earlier flipped between a gain of 1.2% and a loss of 2.6%.

Smaller company stocks outgained the broader market, as they have all year. The Russell 2000 index picked up 45.29 points, or 2.1%, to 2,192.21.

The spark for all the uncertainty Friday was a government report that showed employers added hundreds of thousands more jobs last month than economists expected. That’s an encouraging sign for the economy, and it helped lift Treasury yields, with the closely watched 10-year yield momentarily topping 1.60%.

The yield later fell back from that midday spike and wound up at 1.56%, only slightly higher than a day earlier. It remains well above its roughly 0.90% level at the end of last year.

While the jobs report was encouraging in terms of jobs added by the economy, wage growth — an inflation bellwether — rose last month in line with expectations. That may have helped ease some bond investors inflation worries, at least for now.

“That sort implied, ’OK, at least this report doesn’t point to a surge in inflation,” Stovall said.

That view could change next week, when the government issues its latest consumer and wholesale price data.

For about a year, the stock market kept climbing on expectations that an economic recovery was on the way, even when the coronavirus pandemic meant conditions at the time seemed very bleak. Now that the recovery is much closer on the horizon, the market is unsettled because one of the main underpinnings for that incredible run is under threat: ultralow interest rates.

Yields have been marching higher with rising expectations for the economy’s growth and for the inflation that could accompany it. Economists have been upgrading their forecasts for this year as more people get COVID-19 vaccines, businesses reopen and Congress gets closer to pumping another $1.9 trillion of financial aid into the economy.

The worry is that inflation could take off, or something else could happen to jack yields up even further.

It’s the speed at which Treasury yields have climbed that has gotten Wall Street so uncomfortable, more than the actual level, which is still low relative to history.

Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that had been headed for the stock market and into bonds instead. That makes investors less willing to pay as high prices for stocks.

The pressure is most intense on stocks that look the most expensive, relative to their profits, as well as those bid up on expectations of fast growth far into the future. Critics say most stocks across the market look expensive after prices climbed much, much faster than profits, and warnings about a possible bubble have been on the rise.

Tech stocks and other high-growth companies in particular have been at the center of the downdraft. They soared more than the rest of the market for much of the pandemic, and in the years preceding it. On Friday, Tesla was the heaviest weight dragging on the S&P 500. The stock fell 3.8% and is now down 15.3% so far this year.

It’s another reminder of how dominant Big Tech stocks have become in the market. If inflation does ultimately remain under control, as the Federal Reserve’s chair and many economists expect, the general expectation along Wall Street is that most stocks could benefit.

A stronger economy would mean bigger profits for companies, which would allow their prices to hold steady or rise, even if rates are climbing.

By Friday afternoon, the vast majority of stocks in the S&P 500 had rebounded. Energy producers made some of the largest gains. Diamondback Energy jumped 4.9%, and Chevron gained 4.3% after the price of U.S. crude oil rallied 3.5%.

Tech stocks would likely also see some improvement in their profits, just not to the same degree as companies whose businesses are closely tied to the strength of the economy, such as banks or travel companies.

But Big Tech stocks have grown so big that their movements can mask what’s going on in the broad market. Five Big Tech stocks alone make up more than 21% of the S&P 500 by market value, so weakness for tech can hold back S&P 500 index funds even if many stocks within it are rising.

All the big movements in the bond market have increased attention on the Federal Reserve, whose chair said this week that he’s noticed the recent climb in yields. He disappointed some investors when he didn’t offer anything more forceful that could cap the rise. That has anticipation building for the Fed’s next policy meeting, a two-day session that ends March 17, and whether Powell will offer any more guidance on what moves the Fed may make next.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to bounce back strongly on Monday after a positive finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 107 points or 1.6% higher this morning. On Wall Street on Friday night, the Dow Jones climbed 1.85%, the S&P 500 rose 1.95%, and the Nasdaq index pushed 1.55% higher.

 

[bigdog]

Wall Street finishes mixed as tech slump offsets other gains

Major U.S. stock indexes closed mostly lower Monday as another rise in bond yields helped set off more heavy selling in technology companies.

The S&P 500 fell 0.5% after having been up 1% earlier. Because of their huge size, drops by Apple, Google’s parent company and other major technology stocks helped drag the S&P 500 into the red, even though more stocks rose than fell in the benchmark index.

The selling, which accelerated toward the end of the day, left the tech-heavy Nasdaq composite down 10.5% from the all-time high it reached on Feb. 12. A drop of 10% or more from a recent peak is known on Wall Street as a “correction.”

Bond yields rose broadly. The yield on the 10-year Treasury note climbed to 1.60% from 1.55% late Friday.

Yields have been marching higher with rising expectations for the economy’s growth and for the inflation that could accompany it. Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that had been headed for the stock market into bonds instead. That makes investors less willing to pay as high prices for stocks, especially those that look the most expensive, such as technology stocks.

Investors can expect more market volatility as long as bond yields keep rising, said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I do think it’s something that’s going to be temporary.”

Still, she said, the pullback in technology stocks offers an attractive entry point for investors to snap up shares in some big names, like Apple and Amazon, at a better price.

“There are some solid buy-on-the-dip opportunities here,” Jablonski said.

The S&P 500 fell 20.59 points to 3,821.35. The Dow Jones Industrial Average rose 306.14 points, or 1%, to 31,802.44. The index briefly climbed more than 650 points. The Nasdaq lost 310.99 points, or 2.4%, to 12,609.16.

Smaller company stocks, which have led the market higher this year, notched more gains. The Russell 2000 index added 10.77 points, or 0.5%, to 2,202.98.

Financial stocks had some of the best gains. Wells Fargo rose 3.3% and Citigroup gained 2.8%.

Trading has been choppy in recent weeks as investors fret over the sudden spike in long-term interest rates in the bond market. The S&P 500 is coming off its first weekly gain in three weeks.

Technology companies have been heading lower as investors start to doubt whether the huge gains they made during the pandemic months can continue if inflation surges. Apple fell 4.2%, Google’s parent Alphabet dropped 4.3% and Facebook slid 3.4%.

ASX 200 expected to rise​

The Australian share market looks set to push higher again on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 56 points or 0.8% higher this morning.

Closing on Wall Street sees the Dow Jones up 0.97%, the S&P 500 down 0.54% and the Nasdaq down 2.41%

https://apnews.com/article/technolo...rus-pandemic-4752f4269ee8158d3639ae6cb8d28913

Wall Street finishes mixed as tech slump offsets other gains

By DAMIAN J. TROISE and ALEX VEIGA

Major U.S. stock indexes closed mostly lower Monday as another rise in bond yields helped set off more heavy selling in technology companies.

The S&P 500 fell 0.5% after having been up 1% earlier. Because of their huge size, drops by Apple, Google’s parent company and other major technology stocks helped drag the S&P 500 into the red, even though more stocks rose than fell in the benchmark index.

The selling, which accelerated toward the end of the day, left the tech-heavy Nasdaq composite down 10.5% from the all-time high it reached on Feb. 12. A drop of 10% or more from a recent peak is known on Wall Street as a “correction.”

Bond yields rose broadly. The yield on the 10-year Treasury note climbed to 1.60% from 1.55% late Friday.

Yields have been marching higher with rising expectations for the economy’s growth and for the inflation that could accompany it. Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that had been headed for the stock market into bonds instead. That makes investors less willing to pay as high prices for stocks, especially those that look the most expensive, such as technology stocks.

Investors can expect more market volatility as long as bond yields keep rising, said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I do think it’s something that’s going to be temporary.”

Still, she said, the pullback in technology stocks offers an attractive entry point for investors to snap up shares in some big names, like Apple and Amazon, at a better price.

“There are some solid buy-on-the-dip opportunities here,” Jablonski said.

The S&P 500 fell 20.59 points to 3,821.35. The Dow Jones Industrial Average rose 306.14 points, or 1%, to 31,802.44. The index briefly climbed more than 650 points. The Nasdaq lost 310.99 points, or 2.4%, to 12,609.16.

Smaller company stocks, which have led the market higher this year, notched more gains. The Russell 2000 index added 10.77 points, or 0.5%, to 2,202.98.

Financial stocks had some of the best gains. Wells Fargo rose 3.3% and Citigroup gained 2.8%.

Trading has been choppy in recent weeks as investors fret over the sudden spike in long-term interest rates in the bond market. The S&P 500 is coming off its first weekly gain in three weeks.

Technology companies have been heading lower as investors start to doubt whether the huge gains they made during the pandemic months can continue if inflation surges. Apple fell 4.2%, Google’s parent Alphabet dropped 4.3% and Facebook slid 3.4%.

The latest move higher in bond yields fanned those concerns Monday.

“Interest rates reflect a real economic recovery and they’re not going back down anytime soon,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “Right now, the market is struggling with that.”

Investors have been betting that trillions of dollars in coming government stimulus will help lift the economy out of its coronavirus-induced malaise. There are also investors who are betting that stimulus and an improving economy will result in some amount of inflation down the road.

The U.S. economic aid package, passed narrowly by the Senate on Saturday, provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits. It’s a victory for President Joe Biden and his Democratic allies, and final congressional approval is expected this week.

“That eliminates a major short-term risk and also puts a lot of money into the economy in the short term,” McMillan said.

Rising oil prices are a part of that picture. After plunging with the onset of the pandemic, as demand plummeted, prices have been recovering in the past few months.

Last week, with oil prices rising, some observers were expecting the OPEC cartel and its allies to lift more restrictions and let the oil flow more freely. But OPEC agreed to leave most restrictions in place, despite growing demand.

Benchmark U.S. crude oil for April delivery fell $1.04, or 1.6% to $65.05 a barrel Monday. It’s still up 32.8% so far this year.

 

[bigdog]

Nasdaq jumps 3.7%, most in nearly a year, as Big Tech surges

Technology companies powered stocks higher on Wall Street Tuesday, driving the Nasdaq to its biggest gain in nearly a year and more than making up for a sharp skid a day earlier.

The Nasdaq surged 3.7%, led by gains in Big Tech companies such as Apple, Amazon and Facebook. Despite its big day, the index remains 7.2% below its all-time high set Feb. 12. On Monday, it closed 10% below its peak, what is known as a “correction” on Wall Street.

The tech stocks rally, which helped lift the S&P 500 1.4%, followed a decline in bond yields, which have been increasing rapidly in recent weeks, driving up long-term interest rates. The yield on the 10-year Treasury note dropped to 1.54% after trading above 1.60% a day earlier.

Higher bond yields tend to pull money away from high-priced stocks like technology companies, which have been soaring through the pandemic and, as a result, have been beaten down in recent weeks as bond yields have marched higher.

“The yields being down took a little of the pressure off the tech stocks,” said Willie Delwiche, investment strategist at All Star Charts. “There’s still beneath the surface a buy-the-dip mentality and a belief that large-cap growth (stocks) are going to be a persistent leader in the market.”

The S&P 500 rose 54.09 points to 3,875.44. Communication companies and those that rely on consumer spending also helped lift the benchmark index, while financial, energy and industrial stocks lagged the broader market.

The Dow Jones Industrial Average, which is weighted less toward tech than the other two indexes, rose 30.30 points, or 0.1%, to 31,832.74. The Nasdaq gained 464.66 points to 13,073.82.

Smaller companies also had a good day. The Russell 2000 index of small company stocks added 42.07 points, or 1.9%, to 2,245.06. The index is blowing away the rest of the major indexes this year, with a gain of nearly 14%. The S&P 500 is up 3.2%, while the Nasdaq is up 1.4%, reflecting the pullback in tech stocks in recent weeks.

Some of the big technology stocks that fueled the market’s remarkable turnaround in 2020 after its initial plunge as the pandemic upended the global economy have been shedding gains in the weeks since the Nasdaq’s peak on Feb. 12. Apple, for example, was down 14% through the end of last week, while chipmaker Nasdaq was off 22.5% and Tesla was down 31%.

The stocks recouped some of those losses Tuesday. Apple rose 4.1%, Nvdia climbed 8% and Tesla jumped 19.6% for the biggest gain in the S&P 500.

Financial sector stocks, which had benefited from the rise in bond yields, were the biggest decliners Tuesday. Bank of America fell 2.2%, while American Express slid 3.4%. Banks and credit card issuers tend to do well when interest rates are rising because they get to charge higher rates on loans.

Yields have been climbing with rising expectations for growth and the inflation that could follow. Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that might have gone into the stock market into bonds instead. That makes investors less willing to pay such high prices for stocks, especially those that look the most expensive, such as technology stocks.

ASX 200 futures pointing higher​

It looks set to be another positive day for the Australian share market on Wednesday after Wall Street rallied higher. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.40% higher this morning.

On NYSE closing, the Dow Jones was up 0.10%, the S&P 500 is up 1.42%, and the Nasdaq index finished 3.69% higher.

Tech shares to rebound​

It looks set to be a very good day for Australian tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) on Wednesday. This follows a material rebound on the Nasdaq index overnight. On closing the tech-heavy index is up a massive 3.69%. Among the biggest movers has been electric vehicle giant Tesla with a 19.6% gain. A decline in bond yields sent investors rushing back into beaten down tech stocks.

https://apnews.com/article/technolo...andemic-asia-1eb8fda05e82d4f78e16f6741fea1da8

Nasdaq jumps 3.7%, most in nearly a year, as Big Tech surges

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies powered stocks higher on Wall Street Tuesday, driving the Nasdaq to its biggest gain in nearly a year and more than making up for a sharp skid a day earlier.

The Nasdaq surged 3.7%, led by gains in Big Tech companies such as Apple, Amazon and Facebook. Despite its big day, the index remains 7.2% below its all-time high set Feb. 12. On Monday, it closed 10% below its peak, what is known as a “correction” on Wall Street.

The tech stocks rally, which helped lift the S&P 500 1.4%, followed a decline in bond yields, which have been increasing rapidly in recent weeks, driving up long-term interest rates. The yield on the 10-year Treasury note dropped to 1.54% after trading above 1.60% a day earlier.

Higher bond yields tend to pull money away from high-priced stocks like technology companies, which have been soaring through the pandemic and, as a result, have been beaten down in recent weeks as bond yields have marched higher.

“The yields being down took a little of the pressure off the tech stocks,” said Willie Delwiche, investment strategist at All Star Charts. “There’s still beneath the surface a buy-the-dip mentality and a belief that large-cap growth (stocks) are going to be a persistent leader in the market.”

The S&P 500 rose 54.09 points to 3,875.44. Communication companies and those that rely on consumer spending also helped lift the benchmark index, while financial, energy and industrial stocks lagged the broader market.

The Dow Jones Industrial Average, which is weighted less toward tech than the other two indexes, rose 30.30 points, or 0.1%, to 31,832.74. The Nasdaq gained 464.66 points to 13,073.82.

Smaller companies also had a good day. The Russell 2000 index of small company stocks added 42.07 points, or 1.9%, to 2,245.06. The index is blowing away the rest of the major indexes this year, with a gain of nearly 14%. The S&P 500 is up 3.2%, while the Nasdaq is up 1.4%, reflecting the pullback in tech stocks in recent weeks.

Some of the big technology stocks that fueled the market’s remarkable turnaround in 2020 after its initial plunge as the pandemic upended the global economy have been shedding gains in the weeks since the Nasdaq’s peak on Feb. 12. Apple, for example, was down 14% through the end of last week, while chipmaker Nasdaq was off 22.5% and Tesla was down 31%.

The stocks recouped some of those losses Tuesday. Apple rose 4.1%, Nvdia climbed 8% and Tesla jumped 19.6% for the biggest gain in the S&P 500.

Financial sector stocks, which had benefited from the rise in bond yields, were the biggest decliners Tuesday. Bank of America fell 2.2%, while American Express slid 3.4%. Banks and credit card issuers tend to do well when interest rates are rising because they get to charge higher rates on loans.

Yields have been climbing with rising expectations for growth and the inflation that could follow. Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that might have gone into the stock market into bonds instead. That makes investors less willing to pay such high prices for stocks, especially those that look the most expensive, such as technology stocks.

“We’re going through a regime change and it’s not dissimilar to what we saw last year,” said Kristina Hooper, chief global market strategist at Invesco. “Now we’re seeing the reverse of that and an abrupt move like that creates an environment in which investors start to worry about valuations.”

Striking the “correction” level for the Nasdaq is also important for many investors and traders who use technical indicators to decide when to buy or sell stocks. A correction is typically seen as a healthy moment for any market, giving investors a chance to pause and reallocate their investments without the volatility and stress that a bear market typically can bring.

Bond yields will likely continue rising throughout the year as part of the improving economy.

“It’s not a bad thing, it’s normal and in this environment it’s positive because it’s reflecting a far improved economic outlook,” said Hooper, said.

Investors have been betting that $1.9 trillion in coming government stimulus will help lift the economy out of its coronavirus-induced malaise. There are also investors who are betting that stimulus and an improving economy will result in some inflation down the road.

The U.S. economic aid package, passed narrowly by the Senate on Saturday, provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits. It’s a victory for President Joe Biden and his Democratic allies, and final congressional approval is expected this week.

Meanwhile, GameStop jumped another 26.9%, giving the stock a gain of more than fivefold over the past two weeks. It’s now at $246.90, still down from its closing high of $347.51 on Jan. 27. Its roller-coaster ride started early this year, when it was trading below $19 a share before becoming the focus of an army of online investors seeking to drive it higher.

 

[bigdog]

Stocks mostly climb, except tech, as inflation worries ease

A benign reading on inflation helped spur stocks on Wall Street broadly higher Wednesday, sending the Dow Jones Industrial Average to an all-time high.

The S&P 500 rose 0.6%, led by gains in energy and financial stocks. Technology companies fell, giving back some of their gains from a big rally a day earlier. The tech-heavy Nasdaq posted a small loss after an early gain faded.

A key measure of inflation at the consumer level came in lower than expected last month, helping to calm investors who had worried that prices could rise too quickly as the economy recovers. Treasury yields fell broadly following the report, including the benchmark 10-year Treasury note, which influences interest rates on mortgages and other consumer loans.

Bond yields rose sharply over the past month due to expectations for faster growth and the inflation that could follow. The fall in bond prices attracted investors reluctant to pay high prices for stocks, especially tech stocks that looked most expensive.

“It’s clear that investors expect there to be a bump in inflation in the short term, but the long-term view is pretty benign,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

The S&P 500 rose 23.37 points to 3,898.81. The Dow gained 464.28 points, or 1.5%, to 32,297.02, thanks partly to a 6.4% jump in Boeing. The Dow’s previous all-time high was about two weeks ago.

The Nasdaq slipped 4.99 points, or less than 0.1%, to 13,068.83. The index had been 1.6% higher in the early going. It jumped 3.7% on Tuesday and is now about 7.3% below the all-time high it reached on February 12.

Traders also bid up shares in smaller companies, extending the Russell 2000′s winning streak to a fourth day. The index picked up 40.62 points, or 1.8%, to 2,285.68.

The Labor Department said Wednesday that U.S. consumer prices increased 0.4% in February, the biggest increase in six months. However, a closely watched measure called core inflation, which excludes food and energy prices, posted a much smaller 0.1% gain. The rise for core inflation was also below economists’ expectations.

The latest report on inflation, along with the Federal Reserve promising to keep interest rates low, has helped ease concerns over the recent rise in bond yields, Nixon said.

“Investors are coming around to the view that it’s not a bad backdrop for risk assets,” she said.

Markets have benefited from calmer bond trading the last few days. The yield on the 10-year Treasury note fell to 1.52% on Wednesday. It hit 1.60% late last week, which led to a sell-off in stocks.

Investors are also betting the latest $1.9 trillion in government stimulus will help lift the U.S. economy out of its coronavirus-induced malaise. The House approved the sweeping pandemic relief package over Republican opposition on Wednesday, sending it to President Joe Biden to be signed into law. The package would provide $1,400 checks for most Americans and direct billions of dollars to schools, state and local governments, and businesses.

Banks were among the biggest gainers. JPMorgan rose 2.2%, Bank of America gained 2.9% and Citigroup climbed 3.9%. More than 75% of companies in the S&P 500 notched gains.

Technology stocks lagged the broader market. Apple fell 0.9% and Microsoft slid 0.6%

ASX 200 to bounce back​

The Australian share market looks set to bounce back on Thursday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 39 points or 0.6% higher this morning.

On Wall Street closing, the Dow Jones was up 1.46%, the S&P 500 had risen 0.60%, and the Nasdaq is down 0.04%. Bond yields fell overnight after weak US inflation data.

https://apnews.com/article/financia...ong-shanghai-322b21a31f488cda8eca1c51a855742d

Stocks mostly climb, except tech, as inflation worries ease

By DAMIAN J. TROISE and ALEX VEIGA

A benign reading on inflation helped spur stocks on Wall Street broadly higher Wednesday, sending the Dow Jones Industrial Average to an all-time high.

The S&P 500 rose 0.6%, led by gains in energy and financial stocks. Technology companies fell, giving back some of their gains from a big rally a day earlier. The tech-heavy Nasdaq posted a small loss after an early gain faded.

A key measure of inflation at the consumer level came in lower than expected last month, helping to calm investors who had worried that prices could rise too quickly as the economy recovers. Treasury yields fell broadly following the report, including the benchmark 10-year Treasury note, which influences interest rates on mortgages and other consumer loans.

Bond yields rose sharply over the past month due to expectations for faster growth and the inflation that could follow. The fall in bond prices attracted investors reluctant to pay high prices for stocks, especially tech stocks that looked most expensive.

“It’s clear that investors expect there to be a bump in inflation in the short term, but the long-term view is pretty benign,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

The S&P 500 rose 23.37 points to 3,898.81. The Dow gained 464.28 points, or 1.5%, to 32,297.02, thanks partly to a 6.4% jump in Boeing. The Dow’s previous all-time high was about two weeks ago.

The Nasdaq slipped 4.99 points, or less than 0.1%, to 13,068.83. The index had been 1.6% higher in the early going. It jumped 3.7% on Tuesday and is now about 7.3% below the all-time high it reached on February 12.

Traders also bid up shares in smaller companies, extending the Russell 2000′s winning streak to a fourth day. The index picked up 40.62 points, or 1.8%, to 2,285.68.

The Labor Department said Wednesday that U.S. consumer prices increased 0.4% in February, the biggest increase in six months. However, a closely watched measure called core inflation, which excludes food and energy prices, posted a much smaller 0.1% gain. The rise for core inflation was also below economists’ expectations.

The latest report on inflation, along with the Federal Reserve promising to keep interest rates low, has helped ease concerns over the recent rise in bond yields, Nixon said.

“Investors are coming around to the view that it’s not a bad backdrop for risk assets,” she said.

Markets have benefited from calmer bond trading the last few days. The yield on the 10-year Treasury note fell to 1.52% on Wednesday. It hit 1.60% late last week, which led to a sell-off in stocks.

Investors are also betting the latest $1.9 trillion in government stimulus will help lift the U.S. economy out of its coronavirus-induced malaise. The House approved the sweeping pandemic relief package over Republican opposition on Wednesday, sending it to President Joe Biden to be signed into law. The package would provide $1,400 checks for most Americans and direct billions of dollars to schools, state and local governments, and businesses.

Banks were among the biggest gainers. JPMorgan rose 2.2%, Bank of America gained 2.9% and Citigroup climbed 3.9%. More than 75% of companies in the S&P 500 notched gains.

Technology stocks lagged the broader market. Apple fell 0.9% and Microsoft slid 0.6%

General Electric fell 5.4% for the biggest decline in the S&P 500 after the company said it would wind down its GE Capital financing business and merge its jet leasing business with Ireland-based AerCap.

Videogame company Roblox surged 54.4% in its stock market debut. The company enables users to play online games created by others on the platform.

 

[bigdog]

More records for stock indexes as stimulus bill becomes law

Several major U.S. stock indexes hit all-time highs Thursday, as a recent stretch of volatile trading in the bond market continued to ease, keeping investors in a buying mood.

The S&P 500 index rose 1%, extending its winning streak to a third day as it scored a record high. The Dow Jones Industrial Average and Russell 2000 index of smaller companies also hit all-time highs. The latest gains came as President Joe Biden signed a huge economic relief bill into law.

Technology stocks, which have been hurt this year by rising bond yields, led the market higher, aided by solid gains in communications services companies and those that rely on consumer spending. Banks, utilities and household goods companies fell.

The yield on the 10-year Treasury note inched up to 1.52% from 1.51% late Wednesday. That yield struck the psychologically important 1.60% mark late last week, but has been easing since then.

The recent return of stability to the bond market has been reassuring investors after a sudden spike in long-term interest rates over the past month prompted traders to dump tech shares, which started to look expensive after months of gigantic gains.

“Now that some of the air has come out of the valuations for the (pricier) parts of the market, the stabilization in interest rates is very much being welcomed by investors,” said Elyse Ausenbaugh, global market strategist at J.P. Morgan Private Bank.

The S&P 500 rose 40.53 points to 3,939.34. The benchmark index is on track for its second straight weekly gain. The Dow added 188.57 points, or 0.6%, to 32,485.59, its second all-time high in a row.

The Nasdaq composite gained 329.84 points, or 2.5%, to 13,398.67. The tech-heavy index, which earlier in the week skidded more than 10% below its February peak, has regained some ground, but remains 4.9% below that all-time high.

Traders also bid up shares in smaller stocks. That pushed the Russell 2000 index up 52.86 points, or 2.3%, to 2,338.54.

Up until this week, bond yields have been steadily climbing higher as investors made big bets that trillions of dollars of coming government stimulus will result in strong economic growth later this year and potentially some amount of inflation.

Much of the uncertainty facing the market at the beginning of the year has faded, he said, as vaccine distribution ramped up and businesses reopened. The latest round of stimulus from Washington is also helping to lift uncertainty about the recovery.

President Joe Biden signed into law a sweeping pandemic relief package that would provide $1,400 checks for most Americans and direct billions of dollars to schools, state and local governments, and businesses affected by pandemic-related shutdowns, which began a year ago.

“We’re entering this environment where growth is going to be higher than expected,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “With higher growth you get higher interest rates.”

Big Tech companies powered the latest tech sector rally. Apple rose 1.7%, Microsoft added 2% and Google’s parent company, Alphabet, gained 3.2%.

ASX 200 to rise​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.55% higher this morning.

This follows a positive night of trade on Wall Street, which on closing sees the Dow Jones up 0.58%, the S&P 500 up 1.04%, and the Nasdaq trading 2.52% higher.

https://apnews.com/article/financia...rus-pandemic-034cd9a93e0603ebb54aed1a055fb2e8

More records for stock indexes as stimulus bill becomes law

By DAMIAN J. TROISE and ALEX VEIGA

Several major U.S. stock indexes hit all-time highs Thursday, as a recent stretch of volatile trading in the bond market continued to ease, keeping investors in a buying mood.

The S&P 500 index rose 1%, extending its winning streak to a third day as it scored a record high. The Dow Jones Industrial Average and Russell 2000 index of smaller companies also hit all-time highs. The latest gains came as President Joe Biden signed a huge economic relief bill into law.

Technology stocks, which have been hurt this year by rising bond yields, led the market higher, aided by solid gains in communications services companies and those that rely on consumer spending. Banks, utilities and household goods companies fell.

The yield on the 10-year Treasury note inched up to 1.52% from 1.51% late Wednesday. That yield struck the psychologically important 1.60% mark late last week, but has been easing since then.

The recent return of stability to the bond market has been reassuring investors after a sudden spike in long-term interest rates over the past month prompted traders to dump tech shares, which started to look expensive after months of gigantic gains.

“Now that some of the air has come out of the valuations for the (pricier) parts of the market, the stabilization in interest rates is very much being welcomed by investors,” said Elyse Ausenbaugh, global market strategist at J.P. Morgan Private Bank.

The S&P 500 rose 40.53 points to 3,939.34. The benchmark index is on track for its second straight weekly gain. The Dow added 188.57 points, or 0.6%, to 32,485.59, its second all-time high in a row.

The Nasdaq composite gained 329.84 points, or 2.5%, to 13,398.67. The tech-heavy index, which earlier in the week skidded more than 10% below its February peak, has regained some ground, but remains 4.9% below that all-time high.

Traders also bid up shares in smaller stocks. That pushed the Russell 2000 index up 52.86 points, or 2.3%, to 2,338.54.

Up until this week, bond yields have been steadily climbing higher as investors made big bets that trillions of dollars of coming government stimulus will result in strong economic growth later this year and potentially some amount of inflation.

Much of the uncertainty facing the market at the beginning of the year has faded, he said, as vaccine distribution ramped up and businesses reopened. The latest round of stimulus from Washington is also helping to lift uncertainty about the recovery.

President Joe Biden signed into law a sweeping pandemic relief package that would provide $1,400 checks for most Americans and direct billions of dollars to schools, state and local governments, and businesses affected by pandemic-related shutdowns, which began a year ago.

“We’re entering this environment where growth is going to be higher than expected,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “With higher growth you get higher interest rates.”

Big Tech companies powered the latest tech sector rally. Apple rose 1.7%, Microsoft added 2% and Google’s parent company, Alphabet, gained 3.2%.

The biggest IPO in years rolled out Thursday on the New York Stock Exchange where Coupang, the South Korean equivalent of Amazon in the U.S., or Alibaba in China, began trading under the ticker “CPNG.” The stock soared 40.7%. It’s actually the largest initial public offering from an Asian company since Alibaba went public about seven years ago. And it’s the biggest in the U.S. since Uber raised more than $8 billion in 2019.

General Electric fell 7.4% for the biggest slide in the S&P 500 for the second straight day. The industrial titan announced it would wind down its GE Capital business and merge its jet leasing business with Ireland’s AerCap. GE is in the midst of a multi-year turnaround plan, but investors have been concerned GE has been selling off too many of its more profitable assets.

The price of U.S. crude oil rose 2.5% and lifted energy company stocks. Occidental Petroleum jumped 5.5% and Hess rose 3.2%.

 

[bigdog]

Stocks mostly shake off a weak start, edge to more records

A late-afternoon burst of buying helped nudge several U.S. stock indexes to all-time highs Friday, despite a pullback in Big Tech companies as bond yields headed higher.

The S&P 500 rose 0.1% after having been in the red for most of the day. The benchmark index also notched its second straight weekly gain. Financial and industrial companies led a broad rally, outweighing the slide in technology and communications stocks.

The Dow Jones Industrial Average and Russell 2000 index of smaller company stocks also hit all-time highs for the second day in a row. The tech-heavy Nasdaq composite fell, shedding some of its gains from a day earlier.

The bond market was the dominant force in pulling tech stocks mostly downward, because as yields push interest rates higher, they make high-flying stocks look expensive. After remaining stable for most of the week, the yield on the 10-year Treasury note jumped to 1.62% from 1.52% a day earlier. Investors had sold off stocks late last week after that yield crossed above the 1.60% mark.

“Bond investors are trying to determine how much future growth is in the economy and what that means for inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “It could be over the course of this year or the next couple in terms of trying to find the right level.”

The S&P 500 rose 4 points to 3,943.34, extending its winning streak to a fourth straight day. The Dow added 293.05 points, or 0.9%, to 32,778.64, lifted by industrial stocks like Boeing and Caterpillar. The Nasdaq dropped 78.81 points, or 0.6%, to 13,319.86.

The Russell 2000 picked up 14.25 points, or 0.6%, to 2,352.79 and ended the week 7.3% higher. That blows away the S&P 500′s 2.6% gain for the week.

The stock indexes were mostly lower for much of the day as technology stocks, which had spent most of the week holding steady or climbing, fell broadly as bond yields rose.

Apple fell 0.8%, Facebook dropped 2%, Google’s parent company slid 2.4% and Microsoft lost 0.6%. These giant tech companies soared last year as investors bet that pandemic-quarantined Americans would spend even more time online. But as the pandemic eases this year, and bond yields rise, more expensive stocks such as these have struggled.

The increase in bond yields comes as President Joe Biden signed into law the $1.9 trillion stimulus plan, which will include $1,400 checks for most Americans as well as additional payments for those with children or those who collected unemployment benefits last year. President Biden also laid out a plan, in a primetime speech Thursday, to expand vaccine eligibility to all Americans by May 1.

These moves have given investors confidence that the U.S. and global economy will likely experience a strong recovery in the second half of the year as well as potentially increase the rate of inflation.

Wall Street got another sign Friday that inflation is creeping higher. The Labor Department said its producer price index, which measures inflation before it reaches consumers, rose by 0.5% last month following a record jump of 1.3% the month before. Over the past year, wholesale prices are up 2.8%, the largest 12-month gain at the wholesale level in more than two years

https://apnews.com/article/joe-bide...rus-pandemic-0011860a0c6d212413a85356621be91d

Stocks mostly shake off a weak start, edge to more records

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon burst of buying helped nudge several U.S. stock indexes to all-time highs Friday, despite a pullback in Big Tech companies as bond yields headed higher.

The S&P 500 rose 0.1% after having been in the red for most of the day. The benchmark index also notched its second straight weekly gain. Financial and industrial companies led a broad rally, outweighing the slide in technology and communications stocks.

The Dow Jones Industrial Average and Russell 2000 index of smaller company stocks also hit all-time highs for the second day in a row. The tech-heavy Nasdaq composite fell, shedding some of its gains from a day earlier.

The bond market was the dominant force in pulling tech stocks mostly downward, because as yields push interest rates higher, they make high-flying stocks look expensive. After remaining stable for most of the week, the yield on the 10-year Treasury note jumped to 1.62% from 1.52% a day earlier. Investors had sold off stocks late last week after that yield crossed above the 1.60% mark.

“Bond investors are trying to determine how much future growth is in the economy and what that means for inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “It could be over the course of this year or the next couple in terms of trying to find the right level.”

The S&P 500 rose 4 points to 3,943.34, extending its winning streak to a fourth straight day. The Dow added 293.05 points, or 0.9%, to 32,778.64, lifted by industrial stocks like Boeing and Caterpillar. The Nasdaq dropped 78.81 points, or 0.6%, to 13,319.86.

The Russell 2000 picked up 14.25 points, or 0.6%, to 2,352.79 and ended the week 7.3% higher. That blows away the S&P 500′s 2.6% gain for the week.

The stock indexes were mostly lower for much of the day as technology stocks, which had spent most of the week holding steady or climbing, fell broadly as bond yields rose.

Apple fell 0.8%, Facebook dropped 2%, Google’s parent company slid 2.4% and Microsoft lost 0.6%. These giant tech companies soared last year as investors bet that pandemic-quarantined Americans would spend even more time online. But as the pandemic eases this year, and bond yields rise, more expensive stocks such as these have struggled.

The increase in bond yields comes as President Joe Biden signed into law the $1.9 trillion stimulus plan, which will include $1,400 checks for most Americans as well as additional payments for those with children or those who collected unemployment benefits last year. President Biden also laid out a plan, in a primetime speech Thursday, to expand vaccine eligibility to all Americans by May 1.

These moves have given investors confidence that the U.S. and global economy will likely experience a strong recovery in the second half of the year as well as potentially increase the rate of inflation.

Wall Street got another sign Friday that inflation is creeping higher. The Labor Department said its producer price index, which measures inflation before it reaches consumers, rose by 0.5% last month following a record jump of 1.3% the month before. Over the past year, wholesale prices are up 2.8%, the largest 12-month gain at the wholesale level in more than two years.

Some economists fear that inflation, which has been dormant over the past decade, could begin to rise under the extra demand generated by the government’s new $1.9 trillion stimulus package signed into law Thursday. Others disagree, pointing out that there are 9.5 million fewer jobs in the American economy than there were before the pandemic hit a year ago, and argue that unemployment will keep a lid on inflation.

“The fact remains that there is a tug-of-war regarding the inflation question,” said Quincy Krosby, chief market strategist at Prudential Financial. “And that is, whether or not the inflationary pressure that some in the market expect, whether or not it’s temporary or transient as the Fed characterizes it, or a prelude to a higher inflationary environment as the U.S. economy normalizes.”

Meanwhile, shares of big banks have climbed. Banks are often a proxy for a broader economy, as the ability for borrowers to repay debts matters to banks’ balance sheets and higher interest rates means they can charge more to borrowers. The KBW Bank Index of the 24 largest banks rose 1.7% and is up 26% this year.

Investors got another piece of data that showed that American consumers are feeling increasingly confident about returning to normal, and hopefully returning to their old spending habits. The University of Michigan consumer sentiment index for March came in at a reading of 83.0, well above the reading of 80.0 that economists had expected.

 

[bigdog]

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower this morning following a mixed finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 3 points lower this morning. On Wall Street on Friday night, the Dow Jones climbed 0.9%, the S&P 500 rose 0.1%, and the Nasdaq index dropped 0.59%.

 

[bigdog]

Stocks extend gains for fifth day, led by technology shares

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off an early stumble and closed broadly higher Monday, nudging some of the major U.S. indexes to more all-time highs as the market added to its recent string of gains.

The S&P 500 rose 0.7% after having been down 0.5% in the early going, extending its winning streak to a fifth day. Technology stocks, airlines, cruise operators and other companies that rely on consumer spending helped lift the market. Banks and energy stocks were the only laggards.

Wall Street continues to eye the bond market, where yields pulled back a bit from Friday’s sharp increase. Investors are also focused on the recovery of the U.S. and global economies from the coronavirus pandemic. The $1.9 trillion aid package for the U.S. economy has lifted investors’ confidence in a strong recovery from the pandemic in the second half of the year, but also raised concerns about a potential jump in inflation.

President Joe Biden’s pledge to expand vaccine eligibility to all Americans by May 1 should also translate into faster economic growth.

Rising interest rates continue to be a key concern for investors following the sudden jump over the last month in bond yields. Rates are not yet at a concerning level, and both the markets and economy can easily digest them, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

“The question ultimately becomes how well markets can digest and stay the course on the idea that these increases are temporary,” he said. “As well as coming to terms with the idea that temporary might be three or four quarters.”

The S&P 500 rose 25.60 points to 3,368.94. The Dow Jones Industrial Average gained 174.82 points, or 0.5%, to 32,953.46. Both indexes hit all-time highs, eclipsing records set on Friday.

The tech-heavy Nasdaq Composite added 139.84 points, or 1.1%, to 13,459.71, while the Russell 2000 index of smaller companies rose 7.38 points, or 0.3%, to 2,360.17. That gain was enough for an all-time high.

Bond yields ticked mildly lower on Monday, with the 10-year U.S. Treasury note falling to 1.61% from 1.62% on Friday. The mild drop in yields was affecting bank stocks the most, where investors have placed big bets that higher yields would translate into banks charging borrowers higher rates. Bank of America fell 0.5%, Wells Fargo dropped 0.7% and Citigroup lost 1.3%.

Technology stocks, which have been hurt by the rise in bond yields, resumed climbing. Apple rose 2.4%, while Tesla Motor Co. gained 2%. The bond market has pulled tech stocks mostly lower this year, because as yields push interest rates higher, they make high-flying stocks look expensive.

ASX 200 expected to rise​

It looks like it could be a similarly subdued day for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points higher this morning.

This follows a positive start to the week on Wall Street, which on closing sees the Dow Jones up 0.53%, the S&P 500 up 0.65%, and the Nasdaq trading 1.05% higher.

https://apnews.com/article/financia...rus-pandemic-ff6bc081afc155e6e681361a99720bd9

Stocks extend gains for fifth day, led by technology shares

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off an early stumble and closed broadly higher Monday, nudging some of the major U.S. indexes to more all-time highs as the market added to its recent string of gains.

The S&P 500 rose 0.7% after having been down 0.5% in the early going, extending its winning streak to a fifth day. Technology stocks, airlines, cruise operators and other companies that rely on consumer spending helped lift the market. Banks and energy stocks were the only laggards.

Wall Street continues to eye the bond market, where yields pulled back a bit from Friday’s sharp increase. Investors are also focused on the recovery of the U.S. and global economies from the coronavirus pandemic. The $1.9 trillion aid package for the U.S. economy has lifted investors’ confidence in a strong recovery from the pandemic in the second half of the year, but also raised concerns about a potential jump in inflation.

President Joe Biden’s pledge to expand vaccine eligibility to all Americans by May 1 should also translate into faster economic growth.

Rising interest rates continue to be a key concern for investors following the sudden jump over the last month in bond yields. Rates are not yet at a concerning level, and both the markets and economy can easily digest them, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

“The question ultimately becomes how well markets can digest and stay the course on the idea that these increases are temporary,” he said. “As well as coming to terms with the idea that temporary might be three or four quarters.”

The S&P 500 rose 25.60 points to 3,368.94. The Dow Jones Industrial Average gained 174.82 points, or 0.5%, to 32,953.46. Both indexes hit all-time highs, eclipsing records set on Friday.

The tech-heavy Nasdaq Composite added 139.84 points, or 1.1%, to 13,459.71, while the Russell 2000 index of smaller companies rose 7.38 points, or 0.3%, to 2,360.17. That gain was enough for an all-time high.

Bond yields ticked mildly lower on Monday, with the 10-year U.S. Treasury note falling to 1.61% from 1.62% on Friday. The mild drop in yields was affecting bank stocks the most, where investors have placed big bets that higher yields would translate into banks charging borrowers higher rates. Bank of America fell 0.5%, Wells Fargo dropped 0.7% and Citigroup lost 1.3%.

Technology stocks, which have been hurt by the rise in bond yields, resumed climbing. Apple rose 2.4%, while Tesla Motor Co. gained 2%. The bond market has pulled tech stocks mostly lower this year, because as yields push interest rates higher, they make high-flying stocks look expensive.

Some economists fear that inflation, which has been dormant over the past decade, could accelerate under the extra demand generated by a surge in government spending. Others disagree, pointing out that there are 9.5 million fewer jobs in the American economy than there were before the pandemic hit, and argue that unemployment will keep a lid on inflation.

United Airlines surged 8.3% for the biggest gain in the S&P 500, while American Airlines rose 7.7%. Delta Air Lines gained 2.3% and JetBlue Airways climbed 5.9%. The rally in airline stocks came as the Transportation Security Administration screened more than 1.3 million people both Friday and Sunday, the most since the coronavirus outbreak devastated travel a year ago.

Cruise operators, whose shares have been pummeled over the past year, also had a good day. Carnival gained 4.7%, while Royal Caribbean climbed 4.8% and Norwegian Cruise Line added 2.7%.

Markets got a mixed message from China. It has led the global recovery, reopening earlier than other countries from coronavirus shutdowns following the disease’s emergence in the central city of Wuhan in early 2020.

Retail sales there jumped nearly 36% year-on-year in January-February from a year earlier. The outsized gain benefited from a flattering comparison with the low level of activity during last year’s shutdowns, ING said. Meanwhile, China’s jobless rate rose to 5.5% from 5.2% a year earlier, possibly affected by flare ups of coronavirus in some areas, analysts said.

The Shanghai Stock Exchange fell 1%, while other markets in Asia were mixed.

 

[bigdog]

US Stocks Step Back From All-Time Highs in Choppy Trading​

Stock indexes are closing mostly lower Tuesday, shedding some of their recent gains after coming within striking distance of matching Wall Street's longest winning streak of the year.​

Wall Street capped a choppy day of trading Tuesday with stock indexes closing mostly lower after coming within striking distance of matching the market's longest winning streak of the year.

The S&P 500 fell 0.2% after wobbling between small gains and losses most of the day. The modest pullback snapped the benchmark index's five-day winning streak. A sixth-day of gains would have matched the S&P 500's longest winning streak so far this year, though the index remains near its all-time high.

Losses by banks, industrial stocks and companies that rely on consumer spending, including cruise line operators, pulled the market lower, outweighing gains by Big Tech and communication services stocks. Energy stocks, the S&P 500's biggest gainers so far this year, took the brunt of the losses as crude oil prices fell.

Stocks' uneven finish came as investors continue to closely watch the bond market, with even minute changes in bond yields causing stocks to fluctuate. Bond yields also wavered Tuesday. The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, inched up to 1.62%.

“The 10-year is remaining above 1.60%,” said Sam Stovall, chief investment strategist at CFRA. “So, investors are in a sense girding themselves for higher inflation.”

The S&P 500 dropped 6.23 points to 3,962.71. Earlier, it had been up 0.3%. The Dow Jones Industrial Average lost 127.51 points, or 0.4%, to 32,825.95. The Nasdaq bucked the trend, benefiting from the rally in technology stocks. The tech-heavy index gained 11.86 points, or 0.1%, to 13,471.57.

The big technology names that rose sharply in 2020 were among the gainers Tuesday. Apple rose 1.6%, Google’s parent company added 1.4% and Facebook rose 2%. Tech stocks have moved in tandem with the bond market, so as some bond yields ticked lower on Tuesday, it moved technology stocks in the opposite direction.

Small company stocks lagged the broader market. The Russell 2000 index fell 40.65 points, or 1.7%, to 2,319.52.

Investors weighed new economic data Tuesday that showed Americans cut back on spending last month, partly due to bad weather in parts of the country that kept shoppers away from stores, and partly due to their December and January stimulus payments running out.

Retail sales fell a seasonally adjusted 3% in February from the month before, the U.S. Commerce Department said Tuesday. February's drop followed soaring sales in January as people spent $600 stimulus checks sent at the end of last year. In fact, the Commerce Department revised its January number upwards to 7.6% from its previously reported rise of 5.3%.

Meanwhile severe winter weather pushed industrial production down a sharp 2.2% in February, reflecting a big decline in factory output.

ASX 200 expected to fall​

The Australian share market looks set to drop lower today after a subdued night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% lower this morning.

On closing in the United States, the Dow Jones was down 0.39%, the S&P 500 is down 0.16%, and the Nasdaq is up 0.09%.

https://www.usnews.com/news/busines...hares-rise-after-us-stocks-gain-for-fifth-day

US Stocks Step Back From All-Time Highs in Choppy Trading​

Stock indexes are closing mostly lower Tuesday, shedding some of their recent gains after coming within striking distance of matching Wall Street's longest winning streak of the year.​

By Associated Press, Wire Service Content March 16, 2021, at 5:01 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Wall Street capped a choppy day of trading Tuesday with stock indexes closing mostly lower after coming within striking distance of matching the market's longest winning streak of the year.

The S&P 500 fell 0.2% after wobbling between small gains and losses most of the day. The modest pullback snapped the benchmark index's five-day winning streak. A sixth-day of gains would have matched the S&P 500's longest winning streak so far this year, though the index remains near its all-time high.

Losses by banks, industrial stocks and companies that rely on consumer spending, including cruise line operators, pulled the market lower, outweighing gains by Big Tech and communication services stocks. Energy stocks, the S&P 500's biggest gainers so far this year, took the brunt of the losses as crude oil prices fell.

Stocks' uneven finish came as investors continue to closely watch the bond market, with even minute changes in bond yields causing stocks to fluctuate. Bond yields also wavered Tuesday. The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, inched up to 1.62%.

“The 10-year is remaining above 1.60%,” said Sam Stovall, chief investment strategist at CFRA. “So, investors are in a sense girding themselves for higher inflation.”

The S&P 500 dropped 6.23 points to 3,962.71. Earlier, it had been up 0.3%. The Dow Jones Industrial Average lost 127.51 points, or 0.4%, to 32,825.95. The Nasdaq bucked the trend, benefiting from the rally in technology stocks. The tech-heavy index gained 11.86 points, or 0.1%, to 13,471.57.

The big technology names that rose sharply in 2020 were among the gainers Tuesday. Apple rose 1.6%, Google’s parent company added 1.4% and Facebook rose 2%. Tech stocks have moved in tandem with the bond market, so as some bond yields ticked lower on Tuesday, it moved technology stocks in the opposite direction.

Small company stocks lagged the broader market. The Russell 2000 index fell 40.65 points, or 1.7%, to 2,319.52.

Investors weighed new economic data Tuesday that showed Americans cut back on spending last month, partly due to bad weather in parts of the country that kept shoppers away from stores, and partly due to their December and January stimulus payments running out.

Retail sales fell a seasonally adjusted 3% in February from the month before, the U.S. Commerce Department said Tuesday. February's drop followed soaring sales in January as people spent $600 stimulus checks sent at the end of last year. In fact, the Commerce Department revised its January number upwards to 7.6% from its previously reported rise of 5.3%.

Meanwhile severe winter weather pushed industrial production down a sharp 2.2% in February, reflecting a big decline in factory output.

“We’re still in the midst of getting back to a more normal environment,” said Jason Pride, chief investment officer of private wealth at Glenmede. “Given the lumpiness of government stimulus payments, we're going to see numbers jumping around.”

Investors are betting big that this economic malaise will dissipate as spring arrives for most of the country and more Americans get vaccinated. Further, President Joe Biden's administration started sending out $1,400 stimulus checks to individuals last weekend.

Some investors fear the stimulus could translate into inflation down the road, however, which has caused investors to sell bonds. When bond prices fall, their yields rise.

Wall Street will be closely watching the Federal Reserve's latest economic and interest rate projections Wednesday. Economists expect Fed Chair Jerome Powell will try to convince jittery financial markets that even as the economic picture brightens, the central bank will be able to continue providing support without contributing to higher inflation. Many investors envision a swift and robust recovery later this year that could accelerate inflation and send long-term rates surging.

European shares rose despite news that some users of AstraZeneca's coronavirus vaccine, which was being used heavily in Europe and Asia, reported blood clots. The vaccine's usage is suspended in Europe.

 

[bigdog]

Wall Street closes higher after Fed says will keep rates low

Stocks closed higher Wednesday, reversing an early slide after the Federal Reserve reassured Wall Street that it expects to keep its key interest rate near zero through 2023.

The central bank’s renewed commitment to leaving rates at rock bottom lows comes even as its latest economic forecast calls for growth of 6.5% this year and for inflation to climb above 2% for the first time in years. Wall Street has been anxious about the potential for higher inflation to drive up bond yields further and has been looking for signs that the central bank shares its concerns.

Fed Chair Jerome Powell’s remarks during a news conference appeared to do the trick. Major stock indexes had been down for most of the day, led by another wave of selling in technology companies as bond yields rose, driving the closely watched 10-year Treasury yield up to 1.68% at one point, the highest level since January 2020.

After Powell spoke stocks gradually pivoted higher and bond yields fell. The turnaround nudged the S&P 500 and Dow Jones Industrial Average to all-time highs and pulled the tech-heavy Nasdaq out of the red.

“He reassured the market that the Fed is going to the extent possible be patient about even talking about raising rates,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 rose 11.41 points, or 0.3%, to 3,974.12, recovering from a 0.7% slide. The benchmark index has now notched an all-time high 14 times this year. The Dow gained 189.42 points, or 0.6%, to 33,015.37. The Nasdaq, which had been down 1.5%, rose 53.64 points, or 0.4%, to 13,525.20.

Banks, industrial stocks and companies that rely on consumer spending helped lift the market. Those gains outweighed a pullback in health care, utilities and other sectors.

Smaller company stocks, the market’s standout gainers so far this year, also had good day. The Russell 2000 index of smaller companies picked up 16.87 points, or 0.7%, to 2,336.39.

Treasury yields mostly fell, reversing an earlier move higher. The yield on the 10-year U.S. Treasury note, which has surged in recent weeks on inflation concerns, rose to 1.64%, the highest level since February 2020. It hit 1.62% late Tuesday.

Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that had been headed for the stock market and into bonds instead. That makes investors less willing to pay as high prices for stocks.

Investors are betting big that the economic malaise will dissipate as spring arrives and more Americans get vaccinated against the coronavirus. The $1,400 stimulus checks the Biden administration began sending to individuals last weekend are also helping. But faster economic activity could also translate into some degree of inflation.

ASX 200 futures pointing higher​

The Australian share market looks set to push higher on Thursday morning following a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points or 0.1% higher this morning.

On closing Wall Street, the Dow Jones was up 0.58%, the S&P 500 had risen 0.29%, and the Nasdaq up 0.40%.

https://apnews.com/article/financia...erome-powell-5fdce4c965fc3e5043db10d55214794a

Wall Street closes higher after Fed says will keep rates low

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed higher Wednesday, reversing an early slide after the Federal Reserve reassured Wall Street that it expects to keep its key interest rate near zero through 2023.

The central bank’s renewed commitment to leaving rates at rock bottom lows comes even as its latest economic forecast calls for growth of 6.5% this year and for inflation to climb above 2% for the first time in years. Wall Street has been anxious about the potential for higher inflation to drive up bond yields further and has been looking for signs that the central bank shares its concerns.

Fed Chair Jerome Powell’s remarks during a news conference appeared to do the trick. Major stock indexes had been down for most of the day, led by another wave of selling in technology companies as bond yields rose, driving the closely watched 10-year Treasury yield up to 1.68% at one point, the highest level since January 2020.

After Powell spoke stocks gradually pivoted higher and bond yields fell. The turnaround nudged the S&P 500 and Dow Jones Industrial Average to all-time highs and pulled the tech-heavy Nasdaq out of the red.

“He reassured the market that the Fed is going to the extent possible be patient about even talking about raising rates,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 rose 11.41 points, or 0.3%, to 3,974.12, recovering from a 0.7% slide. The benchmark index has now notched an all-time high 14 times this year. The Dow gained 189.42 points, or 0.6%, to 33,015.37. The Nasdaq, which had been down 1.5%, rose 53.64 points, or 0.4%, to 13,525.20.

Banks, industrial stocks and companies that rely on consumer spending helped lift the market. Those gains outweighed a pullback in health care, utilities and other sectors.

Smaller company stocks, the market’s standout gainers so far this year, also had good day. The Russell 2000 index of smaller companies picked up 16.87 points, or 0.7%, to 2,336.39.

Treasury yields mostly fell, reversing an earlier move higher. The yield on the 10-year U.S. Treasury note, which has surged in recent weeks on inflation concerns, rose to 1.64%, the highest level since February 2020. It hit 1.62% late Tuesday.

Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that had been headed for the stock market and into bonds instead. That makes investors less willing to pay as high prices for stocks.

Investors are betting big that the economic malaise will dissipate as spring arrives and more Americans get vaccinated against the coronavirus. The $1,400 stimulus checks the Biden administration began sending to individuals last weekend are also helping. But faster economic activity could also translate into some degree of inflation.

The Fed policymakers now forecast that the national unemployment rate will drop faster than they did in December: They foresee unemployment falling from its current 6.2% to 4.5% by year’s end and to 3.9%, near a healthy level, at the end of 2022.

That suggests that the central bank will be close to meeting its goals by 2023, when it expects inflation to exceed its 2% target and for unemployment to be at 3.5%. Yet it still doesn’t project a rate hike then.

At least some Fed officials appear to be closer to tightening up the central bank’s ultra-low-rate policies. Four of the 18 policymakers now expect a rate hike in 2022, up from just one in December. And seven predict a hike in 2023, up from five in December.