Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq closes up on tech stocks strength, as hawkish Fed limits S&P

EconomyJun 17, 2021 07:12PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo 2/2

By David French

(Reuters) - Conviction in the strength of the economic recovery pushed investors into U.S. technology stocks on Thursday, driving the Nasdaq higher, although a post-Fed hangover left a subdued S&P nursing a very minor loss.

The marginal decline was the S&P's third negative finish in a row, while the Dow - with a more pronounced drop - posted its fourth straight lower close.

Many investors were still processing the Federal Reserve's unexpectedly hawkish message on monetary policy from the previous day, which projected the first post-pandemic interest rate hikes in 2023.

Fed officials cited an improved economic outlook as the U.S. economy recovers quickly from the pandemic, with overall growth expected to hit 7% this year. While careful not to derail the recovery - with no end in sight for supportive policy measures such as bond-buying - the rate-rise signal highlighted concerns about inflation.

"I think there was a scenario that people had in mind, that the Fed was going to allow for a larger and longer inflation overshoot, and I think with the increase in the dot plot yesterday... people are rethinking that scenario," said David Lefkowitz, head of equities for the Americas at UBS Global Wealth Management.

Technology shares, which generally perform better when interest rates are low, powered a rally on Wall Street last year as investors flocked to stocks seen as relatively safe during times of economic turmoil.

Investors returned to such positions on Thursday. Chipmaker Nvidia (NASDAQ:NVDA) Corp jumped 4.8%, posting its fourth consecutive record close, after Jefferies (NYSE:JEF) raised its price target on the stock.

Meanwhile, shares of Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) shook off premarket declines to advance between 1.3% and 2.2% as investors bet that a steady economic rebound would boost demand for their products in the long run.

The Nasdaq ended 13 points short of its record finish on Monday, but it was still the index's second-highest close ever.

The Dow Jones Industrial Average fell 210.22 points, or 0.62%, to 33,823.45, the S&P 500 lost 1.84 points, or 0.04%, to 4,221.86 and the Nasdaq Composite added 121.67 points, or 0.87%, to 14,161.35.

Graphic: U.S. tech stocks vulnerable to changes in interest rates - https://fingfx.thomsonreuters.com/gfx/mkt/dgkplnykepb/Pasted%20image%201623937801421.png

Interest rate-sensitive bank stocks slumped 4.3% as longer-dated U.S. Treasury yields dropped.

The strengthening dollar, another by-product of the previous day's Fed news, pushed U.S. oil prices down from the multi-year high hit earlier in the week. The energy index, in turn, was off 3.5%, the biggest laggard among the 11 main S&P sectors.

Other economically sensitive stocks, including materials and industrials, fell 2.2% and 1.6% respectively as data showed jobless claims rising last week for the first time in more than a month. Still, layoffs appeared to be easing amid a reopening economy and a shortage of people willing to work.

Volume on U.S. exchanges was 11.77 billion shares, compared with the 10.67 billion average over the last 20 trading days.

The S&P 500 posted 23 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 82 new highs and 37 new lows.

Nasdaq closes up on tech stocks strength, as hawkish Fed limits S&P
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (26)
Mike Brarey
Mike Brarey Jun 17, 2021 5:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no, it's just the market figuring out the the Fed will let inflation run hot
Hunter Gassaway
Hunter Gassaway Jun 17, 2021 3:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That $250 Billion the Senate gave to the tech industry last week , which I didn't vote on, should have a longer lasting effect than one week. And Inflation is what we get ( Fed purchases $80 billion of Treasury debt and $40 billion for mortgage back securities...wow, that seems fair! Where have I seen that before?)
Hunter Gassaway
Hunter Gassaway Jun 17, 2021 3:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed spending $120 Billion a month. Out of control.
Don Getty
Don Getty Jun 17, 2021 3:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hunter Gassaway  as apposed to what they were doing a year ago - lol
Joanna Yin
Joanna Yin Jun 17, 2021 2:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just because of 25% investment tax credit for investments in semiconductor manufacturing?
Ricardo Diogo
Rcd72 Jun 17, 2021 2:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FED keeps driving up the inflation. this useless liquidity will burst into a financial crisis and damage economy
sal galeano
sal galeano Jun 17, 2021 1:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the fed should just say, "we're buying everything and when we're not figure it out, Google is free. (end presser after 1 min)."
Mitchel Pioneer
Mitchel Pioneer Jun 17, 2021 1:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With clockwork precision, the US Ponzi Scheme "rallies" mid-day, and yet more losses are removed from the system.  Fraudulent, criminally manipulated joke.  Why doesn't the "market" plunge mid-day during "rallies?"  Assume the proper position America.
Vincenzo Tilotta
Vincenzo Tilotta Jun 17, 2021 1:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What do you suggest as being "the proper position"?
Duncan McTaggart
Duncan McTaggart Jun 17, 2021 1:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hawkish???? LOL
Mart Bab
Rubberduck1973 Jun 17, 2021 1:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake fake fake markets 🙈🙈🙈
Carrascal Eduardo
Edouard Jun 17, 2021 12:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Technology shares, which generally perform better when interest rates are low." The FAANGs and other technolagic generators of mountains of free cash flow are in no way going to submit to the aforementioned rule, which is nonsense. "The group has come under pressure this year on fears that rising inflation would lead the Fed to hike interest rates sooner than expected" only start ups and other heavily indebted technologies. A very different thing is that its clients are reluctant to invest in technologies that do not produce clear and solid productivity gains, which in a range of rates of 0.25-3% will be unlikely or negligible in the economy as a whole. The statements in this writing should be reviewed.
john dislias
john dislias Jun 17, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Panic sellers go home . You cant sell ford ,ual and AA without reason
jake goldstein
jake goldstein Jun 17, 2021 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Professor Segal is spot on .God Bless his for predicting the FED move and now God Bless him for looking into the future and seeing lots of dark clouds.He wants a more honest economy but the FED are been too slow to move.
Jouni Matero
Jouni Jun 17, 2021 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yet again trend teen of the summer is used: "shrugg off" and looks like hawkish is a new one too. Optimism shruggs off anything, even nuclear bombing would be shrugged off because of "optimism" (manipulation).
Jouni Matero
Jouni Jun 17, 2021 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Teen = term
Rob Fordham
Rob Fordham Jun 17, 2021 11:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its money folks dont take it personally and dont panic buy good quaility and ride out the volatility
Rob Fordham
Rob Fordham Jun 17, 2021 11:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Man from the comments here many folks really are kind of misguided on investing
Alan Rice
Alan Rice Jun 17, 2021 11:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
most.
Devin Nathaniel
Devin Nathaniel Jun 17, 2021 11:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sell on strength peeps.
AA AA
AA AA Jun 17, 2021 11:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
short on strength all tech stocks
Rob Fordham
Rob Fordham Jun 17, 2021 11:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do that at your own pearl
arthur santos
arthur santos Jun 17, 2021 10:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if you spin it fast enough...now you see it, now you don't...
Jan Kurfürst
Jan Kurfürst Jun 17, 2021 10:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
admittedly Reuters probably wrote this before open, but they could be more adaptable...
arthur santos
arthur santos Jun 17, 2021 10:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they have no shame, embarrassment or professional self-respect
Tarun Malik
Tarun Malik Jun 17, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Atleast change the headline, ****
Mitchel Pioneer
Mitchel Pioneer Jun 17, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another miracle unfolds in the greatest financial fraud in history, and biggest investment joke in the world, the US Ponzi Scheme.  Losses vanish, as they prepare for the Friday round of criminal manipulation, sending the US working class into another weekend with a financial knife in the back.
jake goldstein
jake goldstein Jun 17, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The rich get richer with no tax to pay while the working class are crushed and with only more tax rises for them in the pipeline and higher inflation and greater interest on their credit cards and loans. The game is almost up but the rich want every last drop of fed cash before the market explodes.
jake goldstein
jake goldstein Jun 17, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wall street and the capital hill insiders have the working class over a barrel month after month ,year after year .The media the puppets of the rich do their level best to keep the curtain drawn  so the working class are always on the wrong foot and have never ending debt. Where is Toto when you need him?
sal galeano
sal galeano Jun 17, 2021 10:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dragged down tech? 🖕
Josh White
Josh White Jun 17, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so why is nasdaq up today?
Jouni Matero
Jouni Jun 17, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joke of the day from FED. That's why.
Steffen vdm
Steffen vdm Jun 17, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How many chickens would it take to ******an elephant? No one knows...
Kaveh Sun
Kaveh Sun Jun 17, 2021 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
99.99% Retail traders/investors always loose. The rich know how to use Reuters to win.
Jouni Matero
Jouni Jun 17, 2021 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You should know by now that this joke market only goes up if any negative news are released.
Predrag Mandusic
Predrag Mandusic Jun 17, 2021 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dragged down not to drag down... People that write like this influence the people who are not informed.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email