On Tuesday’s Wall Street, tech companies led the rise in stock prices. The market was more than offset by a modest setback to start the week.
The S & P 500 rose 1.1%, with more than 70% of Benchmark Index stocks rising. The Dow Jones Industrial Average rose 0.7% and the tech-heavy Nasdaq Composite index rose 2%.
Bond yields have skyrocketed for the second straight day, reflecting expectations of a more aggressive rate hike by the Federal Reserve as central banks try to curb the highest inflation in decades. Yields on 10-year Treasuries rose from 2.30% on Monday to 2.38%. Yields affecting interest rates on mortgages and other consumer loans were 2.14% late Friday.
Bond yields and equity increases will take place the day after Federal Reserve Chair Jerome. Powell said central banks are ready to move more aggressively Raise interest rates in the fight against inflation, if necessary. Powell said the Fed will halve benchmark short-term interest rates at multiple Fed meetings as needed.
Sam Stovall, CFRA’s Chief Investment Strategist, said:
The S & P 500 rose 50.43 points to 4,511.61 and the Dow rose 254.47 points to 34,807.46. Nasdaq rose 270.36 points to 14,108.82.
SME stocks also rebounded. The Russell 2000 Index added 22.41 points, or 1.1%, to 2,088.34.
Concerns over rising inflation and slowing economic growth have so far squeezed equities in 2022, but last week’s rebound helped reduce some of the losses on the Benchmark S & P 500 that year. The index is currently down 5.3%.
Markets are volatile as Wall Street adapts to slowing economic growth as federal spending on various stimuli diminishes.
Matt Stacky, Senior Portfolio Manager at Northwestern Mutualwealth, said:
Last Wednesday, the central bank announced a quarter point rate hike, the first rate hike since 2018. The federal government has not halved the benchmark interest rate since May 2000.
“Given the geopolitical conflict, the frustrating inflation setting of the Federal Reserve is likely to be even more complicated,” Sticky said.
Investor concerns about the sustained rise in inflation Russian war in Ukraine.. Energy and commodities prices were already high as demand exceeded supply during the global economic recovery, but conflicts pushed oil, wheat and other prices even higher.
Soaring raw material costs and transportation issues are driving up operating costs for businesses. Many of these costs are passed on to consumers, and higher prices for food, clothing and other commodities can reduce spending and slow economic growth.
Most of Tuesday’s rise in the S & P 500 was driven by technology and telecommunications stocks, as well as companies that depend on consumer spending. Apple was up 2.1% and Twitter was up 2.6%. Nike added 2.2% after reporting surprisingly good third-quarter performance. Energy stocks have fallen as oil prices have fallen.
Banks helped raise the market as bond yields continued to rise. Higher bond yields allow banks to charge more favorable interest on loans. Bank of America was up 3.1% and JPMorgan Chase was up 2.1%.
The price of US benchmark crude oil fell 0.3% to $ 111.76 per barrel, while international standard Brent fell 0.1% to $ 115.48 per barrel. The European market rose significantly, but the Asian market rose overnight.
Investors will begin preparing their next corporate earnings report shortly as the quarter nears the end of March. This gives you a clearer picture of how the industry continues to address rising costs.
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Stocks rise on Wall Street and oil prices fall | Associated Press
Source link Stocks rise on Wall Street and oil prices fall | Associated Press