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Stock Market Today: Dow Ends Higher as Wild Tech Swings Continue

Published 05/02/2022, 04:02 PM
Updated 05/02/2022, 04:06 PM
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com – The Dow ended higher Monday, as wild swings continued in technology stocks amid an ongoing rise in Treasury yields ahead of a widely expected Federal Reserve interest rate hike later this week.

The Dow Jones Industrial Average gained 0.26%, or 84 points, the S&P 500 rose 0.6%, and the Nasdaq rose 1.6%

Tech stocks swung between positive and negative intraday as the 10-year Treasury yield briefly breached 3% for first time since 2008, but dip-buyers emerged late on to help push growth stocks and the broader market higher. The climb in Treasury yields comes just a day ahead of the Fed's two-day meeting.  

“We see the FOMC on course to deliver its second rate hike of the cycle – a 50bp hike – at its May meeting, while also announcing its plan to begin reducing the size of its balance sheet starting in June,” Morgan Stanley said in a note.

Gains from Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Meta (NASDAQ:FB) led the rebound in tech, while Amazon  (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) cut losses to end the day in the green. 

Communication services were also in the ascendency, underpinned by gains in the Warner Bros Discovery (NASDAQ:WBD), Paramount (NASDAQ:PARA), and Activision Blizzard (NASDAQ:ATVI). 

Activision Blizzard (NASDAQ:ATVI) was up more than 3% after famed-investor Warren Buffett said that Berkshire Hathaway (NYSE:BRKa) now owned a 9.5% stake in the video game giant.

Quarterly results from corporates, meanwhile, did little to support investor sentiment on stocks.   

 
Global Payments (NYSE:GPN) fell more than 8% despite reporting a beat on both the top and bottom lines and full-year guidance that met Wall Street expectations.
 
Moodys (NYSE:MCO), down nearly 5%, after credit ratings company trimmed its full-year earnings guidance on jitters that market volatility is set to continue. 
 
On the economic front, U.S. manufacturing activity in April slowed to its lowest reading since September 2020, pressured by further supply chain woes following recent lockdowns in China.

“Supplier delivery times are lengthening again, probably in response to China lockdowns,” Jefferies said in a note.

Latest comments

Foreclosure filings up 132% in case you missed it?
Reality is setting in fast
ll)0]p)0 bbn
us gov tries to save the market, but invisible hand will push it to the neutral sites.
anyway you look at it, the direction is down. it never goes in a straight line.
More like Fed saved the day.
More like Amazon. Everything was deep red until the news broke that unionization efforts were defeated at a second warehouse. AMZN went from almost -5% to end in green.
You won't see a 500 point "rally" plunge into the red "in late trade," but one after another, 500+ point losses miraculously vanish into thin air.  Only in the US Ponzi Scheme, which has earned the unchallenged position of being the most pathetic, criminally manipulated farce in the history of the financial markets.  Yes indeed, the biggest, most fraudulent investment JOKE in the world.
Very well put. This whole thing remindss me of Spring 2009 when the Fed bought everything in sight.
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