Please try another search
By Yasin Ebrahim
Investing.com – The S&P 500 and Nasdaq closed at all-time highs Monday as tech made a strong start to the week despite some on Wall Street warning of a hawkish surprise from the Federal Reserve later this week.
The S&P 500 rose 0.18%, to close at a record high of 4,255.15. The Dow Jones Industrial Average was down 0.25%, or 85 points, and the Nasdaq Composite was up 0.74% to close a record high of 14,174.14.
The Federal Open Market Committee kicks off its two-day meeting on Tuesday, against fresh worries that the central bank could be behind the curve on inflation.
"Given the shift in the mix of inflation from transitory towards sustainable, the risk of a hawkish tilt within the FOMC has increased," Morgan Stanley (NYSE:MS) said in a note.
The fall in rates leading up to the FOMC meeting suggests investors are dismissing inflation as transitory, just "at the time when the sustainability of inflation looks more viable," Morgan Stanley added.
Treasury yields ended higher on the day, but that didn't spell doom and gloom for highly-valued technology stocks, which tend to be less attractive in rising rate environments.
Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB) traded sharply higher.
Cyclicals including industrials, energy, and financials were not having a good day.
Financials slipped more than 1%, paced by a drop in banking stocks after JPMorgan's chief executive Jamie Dimon warned the that pandemic-led boom in trading revenue for JPMorgan could be nearing an end.
Fixed-income trading revenue JPMorgan will be just above $6 billion in the second quarter, Dimon said Monday at a Morgan Stanley virtual conference.
JPMorgan Chase & Co (NYSE:JPM), Citigroup (NYSE:C) and Goldman Sachs Group (NYSE:GS) were down more than 1%.
Energy, meanwhile, failed to capitalize on a jump in oil prices toward 32-month highs amid losses in Baker Hughes (NYSE:BKR), Schlumberger (NYSE:SLB) and Hess (NYSE:HES).
In other news, Lordstown Motors (NASDAQ:RIDE) fell 19% after Steve Burns and Julio Rodriguez resigned as the company's chief executive officer and chief financial officer, respectively.
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.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.