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Wall Street climbs on tech gains as U.S. Treasury yields dip

Stock MarketsMay 24, 2021 07:16PM ET
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© Reuters. FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid/File Photo

By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stocks climbed on Monday, with the Nasdaq jumping more than 1% as a retreat in U.S. Treasury yields helped lift expensive stocks in sectors such as technology as investors attempt to gauge the trajectory of inflation.

Among the 11 major S&P sectors, technology advanced 1.76% and communication services rose 1.84% as the top performing on the session, as yields on the benchmark 10-year Treasury bond hit a two-week low, which also buoyed other richly-valued growth stocks.

Inflation concerns cooled for the time being as investors may be starting to view President Joe Biden's infrastructure bill as likely to be smaller, or unable to provide as big an economic boost, even after being pared down in size on Friday.

Bill Stone, chief investment officer, The Glenview Trust co in Louisville, Kentucky said growth stocks were likely getting a look on Monday due to the decline in yields.

"It seems to be the continued bounce in a rotation back to growth, the top performing sectors today are all growth stocks," "It's the continuing tug of war" he said.

The Dow Jones Industrial Average rose 186.14 points, or 0.54%, to 34,393.98, the S&P 500 gained 41.19 points, or 0.99%, to 4,197.05 and the Nasdaq Composite added 190.18 points, or 1.41%, to 13,661.17.

Tech giants Apple (NASDAQ:AAPL), up 1.33% and Microsoft (NASDAQ:MSFT), up 2.29% on the day, were the biggest boosts to the benchmark S&P index. The sector has been among the worst performing for the month and year to date as inflation concerns have grown and bond yields have moved higher.

Graphic: S&P tech sector vs 10-yr US Treasury yield, https://fingfx.thomsonreuters.com/gfx/mkt/gjnvwndodpw/Pasted%20image%201621869737273.png

Equity markets have grown volatile in recent weeks as investors weigh strong economic data and fears that supply bottlenecks could lead to an extended stretch of higher prices, which would in turn force the Federal Reserve to scale back its massive monetary stimulus.

St. Louis Fed President James Bullard said on Tuesday he expects the inflation rate to be above 2% both this year and next but several Fed officials, including Bullard, continued to support the central bank's policy in separate remarks.

After falling as much as 4% from its May 7 record closing high, the S&P 500 is now less than 1% off that level as investors begun to buy technology stocks that have come under pressure in a rising rate environment.

The release of U.S. personal consumption data on Thursday, the Fed's preferred inflation measure, will be a highlight of the economic data published this week.

Risk sentiment also improved as cryptocurrencies recovered some losses after a weekend selloff fueled by further signs of a Chinese crackdown on the emerging sector. Bitcoin added to gain late in the session after Elon Musk tweet about meeting with North American miners of the cryptocurrency.

Cabot Oil & Gas Corp (NYSE:COG) and Cimarex Energy Co (NYSE:XEC) agreed to merge to form a U.S. oil and gas producer with an enterprise value of about $17 billion, the latest deal in a sector rebounding from one of its worst downturns.

Shares of Cabot (NYSE:CBT) and Cimarex both tumbled around 7% while the broader energy index climbed 0.99% as oil prices rose 3%.

Advancing issues outnumbered declining ones on the NYSE by a 2.13-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored advancers.

The S&P 500 posted 28 new 52-week highs and no new lows; the Nasdaq Composite recorded 105 new highs and 46 new lows.

Volume on U.S. exchanges was 8.29 billion shares, compared with the 10.43 billion average for the full session over the last 20 trading days.

Wall Street climbs on tech gains as U.S. Treasury yields dip
 

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Comments (10)
生活越孤独越快乐 社会越静越好
生活越孤独越快乐 社会越静越好 May 24, 2021 1:11PM ET
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Please ban posting ads and links in Comments section. Don’t click these links to protect your device.
Paulo Silva
Paulo Silva May 24, 2021 12:31PM ET
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buy while you can, then stop, hold, accumulate cash and wait to buy on a discount. this goes for investors, not traders.
Paulo Silva
Paulo Silva May 24, 2021 12:31PM ET
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2022 until Q2 should be fine. until SP 500 reaches 6000 is ok. after that, we'll see a big drop. prepare for that.
Mark Stallone
Mark Stallone May 24, 2021 12:09PM ET
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Milk the market while you can.. Come '22/'23, I predict we're in for a recession.
Amine Fourali
Amine Fourali May 24, 2021 12:05PM ET
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Equity valuations are back to reasonable levels...lol. Which kind of strategist is that?
Mitchel Pioneer
Mitchel Pioneer May 24, 2021 11:33AM ET
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Pedal to the metal for the criminal manipulation, as the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world, twists the financial knife in the back of America.
Lloyd Ang
Lloyd Ang May 24, 2021 11:27AM ET
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time for tech to get stay ahead as virus rages on. need tech more than crypto
Lloyd Ang
Lloyd Ang May 24, 2021 11:26AM ET
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time for tech to get stay ahead as virus rages on. need tech more than crypto
Lloyd Ang
Lloyd Ang May 24, 2021 11:25AM ET
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crypto cries, tech rise
Jouni Matero
Jouni Matero May 24, 2021 10:31AM ET
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Illogical rise again, but doesn't come as surprise to anyone anymore
Edward Chong
Edward Chong May 24, 2021 10:31AM ET
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ya the next few days will sell down again. and next week will be up again. get used to it juz wasting time.
Jouni Matero
Jouni Matero May 24, 2021 10:31AM ET
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I know but doesn't exclude illogical anyways. Hilarious when analysts always find any reason for highs/lows when there's none but ppl rushing to buy/sell just bcoz of fomo.
Mark Jannetty
Mark Jannetty May 24, 2021 10:31AM ET
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Edward Chong I hope you are right. I can make money all day with a market with no direction
Edward Chong
Edward Chong May 24, 2021 10:31AM ET
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u can try but the range is very tight.
justin namon
justin namon May 24, 2021 10:11AM ET
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I guess cryptos were too volatile for the indexes to correlate with. Instiutions prefer oil to rally with
 
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