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S&P 500 on Track for Another Record as Tech Stocks Rally

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S&P 500 on Track for Another Record as Tech Stocks Rally

< div class=" articleLead "itemprop=" articleLead "data-sbid=" SB12324141965730644661304587389690938135390 ">< img src=" https://cpanews.org/wp-content/uploads/2021/04/VI2D8Z.png" class =" dynamic-inset-fallback" width=" 300 "height =" 400" layout =" responsive ">< div class=" articleBody "data-sbid=" SB12324141965730644661304587389690938135390" >

< amp-social-share type=" system" width=" 72 "height=" 24" data-param-url=" https://www.wsj.com/articles/global-stock-markets-dow-update-04-08-2021-11617867772" >< div class =" media-object-podcast" amp-access=" gain access to" style= "display: flex; justify-content: left; align-items: center; margin: 0 10px 20px 10px;" > The S&P 500 was poised Thursday to set another record, moved by a rally in huge technology stocks. The broad market index climbed 0.3% after closing at its 18th record this year on Wednesday

. The tech-laden Nasdaq Composite rose 0.8%. The Dow Jones Industrial Average included approximately 0.04%. Stocks have begun the second quarter on strong footing, with the S&P 500 increasing 2.7% this month. The biggest tech companies have surged ahead as the bond market relaxed, easing issues about the high appraisals of development stocks.

” Within the market, the huge element up until now this year has actually been interest rates,” stated Ed Keon, primary investment officer at QMA. “So rates going up was part of the reason you had this expanding of the marketplace and a bit of a rotation towards worth stocks, specifically financials and energy. And now rates have actually alleviated off their highs, you’re seeing those sectors underperform and technology return into the lead.”

At the International Monetary Fund’s virtual spring conferences, Federal Reserve Chairman.

Jerome Powell.
expressed concern over long-term “labor market scarring” and guaranteed ongoing assistance for those out of work due to the pandemic and subsequent recession.

” It’s crucial to bear in mind we’re not returning to the exact same economy,” he stated. “This will be a various economy.”

Mr. Powell’s remarks highlighted Fed policy makers’ comments, launched Wednesday, that they would continue with easy monetary policies till the economy has recovered more.

The most recent data on out of work claims showed that layoffs increased for a 2nd week, highlighting the unevenness of the recovery. Worker filings for preliminary welfare increased to 744,000 recently, from a revised total of 728,000 the previous week. Financial experts surveyed by The Wall Street Journal were anticipating a decline to 694,000.

” The dynamic stays encouraging for stocks,” said Adrien Pichoud, a portfolio supervisor and primary financial expert at SYZ Private Banking. “The Fed and reserve banks in basic are viewed to be in no rush to raise rates.”

In bond markets, the yield on the 10-year U.S. Treasury note decreased to 1.643%, down from 1.653% on Wednesday. It had climbed up as high as 1.749% at the end of last month. Yields rise when bond prices fall.

The cooling down in bond yields has caused a revival in the largest technology stocks’ rally. Apple,.
Microsoft,
Amazon.com.
and Google’s parent Alphabet– which are the most significant business by market value on the S&P 500– have each climbed up more than 4% this month after stumbling in March.

In Thursday’s session, software application companies logged big gains, with.
ServiceNow.
and.
Autodesk.
including 2.9% and 2.4%, respectively. Other stocks that flourished during lockdown, like.
Etsy.
and.
PayPal Holdings,
climbed up too, rising 5.9% and 2.6%, respectively.

” We consider bond yields to be close to the top, so among the barriers to tech has actually begun to come down,” stated.

Seema Shah,.
primary strategist at Principal Worldwide Investors. “If there ever was going to be a test for tech, it would be this environment, with rising bond yields and the work-from-home trade starting to fade, but tech has actually stayed truly durable in the face of that.”

The consumer staples sector, on the other hand, was a vulnerable point Thursday with.
Constellation Brands.
dropping 5% and.
Walgreens Boots Alliance.
off 1.7%.

” A lot of them did effectively last year as people stayed home and bought a great deal of bleach and other staples,” Mr. Keon said. “Now, as the pandemic reduces and the broader economy is clearly showing indications of terrific development, staples tend to be lower beta both to the economy and to the market, so they have underperformed in that environment.”

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.6% on Thursday, a record close. In Asia, most significant benchmarks climbed up. The Shanghai Composite Index added less than 0.1%, and Hong Kong’s Hang Seng Index increased 1.2%.

Traders worked the floor of the New York Stock Exchange on Wednesday.

< img src=" https://images.wsj.net/im-322130?width=620&size=1.5" layout=" responsive" placeholder height =" 413.3333333333333" width=" 620" alt =" Traders worked the flooring of the New York Stock Exchange on Wednesday.

” > Traders worked the floor of the New York Stock Exchange on Wednesday. Picture: Colin Ziemer/Associated Press

Compose to Anna Hirtenstein at anna.hirtenstein@wsj.com and Julia Carpenter at Julia.Carpenter@wsj.com!.?.! Released at Thu, 08 Apr 2021 17:04:00 +0000