Tech stocks lead rebound as investors show renewed optimism around economic recovery

Pimco at NYSE in 2018
Pimco at NYSE in 2018


US stocks rallied at the open on Wednesday after a sharp sell-off the previous day as traders expressed renewed optimism about the economic recovery. The tech-heavy Nasdaq led the charge, with investors piling into rate-sensitive technology stocks as bond yields stabilized.

Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen are set to appear before the Senate at 10 a.m. for the second day of hearings. On Tuesday, Powell said that the US economic recovery had progressed faster than expected but was far from complete and that the Fed would provide support for as long as it takes to fully recover.

Oil prices bounced after their recent slide. A major ship blockage in the Suez Canal could delay supply.

Here’s where US indexes stood after the 9:30 a.m. ET open on Wednesday:

Bitcoin rose by 5%, to above $57,000, after Elon Musk said people could now buy Tesla cars with the world’s most popular cryptocurrency.

West Texas Intermediate crude rose by 3.4%, to $59.70 per barrel. Brent crude, oil’s international benchmark, gained 3%, to $62.67 per barrel.

Gold jumped 0.4%, to $1,731.60 per ounce.

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Nasdaq surges on tech-stock strength as Treasury yields cool from 14-month high

Traders work on the floor of the New York Stock exchange
Traders work on the floor of the New York Stock exchange

Tech stocks led the broader rally on Monday as investors eye pullback in Treasury yields and resumed buying after last week’s volatility.

The tech-heavy Nasdaq 100 closed higher by over 1% as the 10-year US Treasury note tumbled from a 14-month high.

Bank of America revised its forecast from 1.75% to 2.15% for the 10-year US Treasury note by year-end, adding that “curves appear headed steeper but not uniformly.”

“Our prior forecasts identified the likely drivers and magnitude of the move, although we underestimated the speed of the adjustment. Our forecasts are in-line with fair value implied by our US economist projections,” the bank said in a note on Monday.

Here’s where US indexes stood at the 4 p.m. ET close on Monday:

On Friday, tech stocks rebounded after Treasury yields stabilized. However, the Fed’s announcement earlier that day that it would not extend the temporary regulatory relief it granted banks after March 31 sent bank stocks lower.

Kansas City Southern surged 14% following the railway operator’s deal to be purchased by Canadian Pacific Railway for $25 billion. The transaction set to create the first rail network that spans North America.

RLX Technology sank as much as 45% on the Chinese government said it is looking to increase regulations on e-cigarette manufacturers.

Morgan Stanley Investment Management is “extremely bullish” on value stocks, especially after the Federal Reserve’s decision to keep its policy in place until the US economy rebounds last week. Continued liquidity and no change in policy mean sustained performance for value stocks, Andrew Slimmon, managing director and senior portfolio manager, explained.

In the crypto space, Twitter CEO Jack Dorsey sold his first-ever tweet for $2.9 million dollars as a non-fungible token, or NFT, on Monday. Hours after the news broke, the executive donated the sum to a nonprofit’s Africa response.

Bitcoin fell 2.97% to $55,782 as of Monday 4 p.m. ET, after scaling above the $57,000-level earlier in the day.

Oil prices rose modestly. West Texas Intermediate crude was up 0.8%, to $61.47 per barrel. Brent crude, oil’s international benchmark, was up 0.2%, to $64.54 per barrel.

Gold slipped as much as 0.32%, to $1,739.79 per ounce.

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US stocks fall as traders digest the Fed’s decision to let capital break for banks expire

Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City
Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City

  • US stocks fell on Friday morning, extending a sharp sell-off the day before.
  • The spiking bond yields that have driven stocks lower cooled initially, with the 10-year Treasury yield retreating from a 14-month high.
  • Bank stocks then dipped and the 10-year surged after the Fed announced it will not extend a pandemic-era rule that allowed banks to maintain lower amounts of capital.
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US stocks fell on Friday after the Fed announced that its temporary pandemic-era rule that relaxed bank capital requirements will not be extended after March 31. That offset the positive effect of stabilizing bond yields, which then spiked on the news.

Bond yields have risen as investors grow concerned that the $1.9 trillion fiscal stimulus will cause a rise in inflation, leading the Federal Reserve to change policy and raise rates sooner than expected.

Chetan Ahya – Morgan Stanley’s chief economist – is concerned that a rapid labor-market recovery could push inflation levels to spike and breach the Fed’s 2.5% inflation “tolerance threshold” as soon as 2022. That could bring a “disruptive shift in expectations for Fed tightening,” and lead to heightened stock market volatility down the road, he said on a recent podcast.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Elsewhere, Fed Chair Jerome Powell said that central bank digital currencies must coexist with cash and other forms of money. The pandemic has highlighted the limitations of the current payment system, but collaboration is required to improve it, he said.

Oil prices extended losses after tumbling 7% on Thursday as investors second-guessed the recent rally and reacted to the slow rollout of coronavirus vaccines in Europe that could dent demand growth. West Texas Intermediate crude fell as much as 1.6%, to $59.06 per barrel. Brent crude, oil’s international benchmark, fell by 1.6%, to $62.24 per barrel, at intraday lows.

Gold jumped slid as much as 0.5%, to $1,728.57 per ounce.

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Nasdaq falls 3% as jump in bond yields hurts technology stocks

trader nyse pray

A decline in US stocks on Thursday was led by the Nasdaq 100, which fell 3% following a surge in interest rates.

The 10-year US Treasury yield hit 1.75% on Thursday, representing a new cycle-high for the treasury note. Yields haven’t been that high since January 2020, just two months before the COVID-19 pandemic led to widespread lockdowns across the globe.

Investors’ inflation fears weren’t quelled by Fed Chairman Jerome Powell’s speech on Wednesday, as he committed to his resolve in maintaining ultra-low interest rates, as he sees current inflation concerns as transitory.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Weekly jobless claims moved higher on Thursday to 770,000, which was higher than economist estimates of 700,000 and also above last week’s revised number of 725,000.

AMC Entertainment jumped nearly 5% after the company said 98% of its movie theater locations would be open by this Friday.

Bitcoin moved higher on Thursday and flirted with the $60,000 level as Fed Chairman Jerome Powell’s commitment to continue supporting the economy with easy monetary policy fueled inflation concerns, which some investors say bitcoin is a hedge against.

Penny stock trading volume has soared 2,000% in the past year as a surge in retail investors has led to speculative investing in risky trading vehicles.

The recent launch of the “BUZZ” social sentiment ETF, which was promoted by Barstool Sports’ Dave Portnoy, has been a success as it passed the $500 million mark in assets under management.

Oil prices plunged on Thursday as investor fear over rising inventory builds, a strengthening US dollar, and lower demand prospects amid an uneven global vaccine rollout.

West Texas Intermediate crude fell over 8%, to $59.07 per barrel. Brent crude, oil’s international benchmark, dropped by 8.3%, to $62.37 per barrel, at intraday lows.

Gold jumped as much as 0.3%, to $1,732 per ounce.

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Tech stocks crumble as renewed inflation fears send 10-year yield to new cycle highs

trader nyse worried chart

A decline in US stocks on Thursday was led by the Nasdaq 100, which fell nearly 2% following a surge in interest rates.

The 10-year US Treasury yield hit 1.75% on Thursday, representing a new cycle-high for the treasury note. Yields haven’t been that high since January 2020, just two months before the COVID-19 pandemic led to widespread lockdowns across the globe.

Investors’ inflation fears weren’t quelled by Fed Chairman Jerome Powell’s speech on Wednesday, as he committed to his resolve in maintaining ultra-low interest rates, as he sees current inflation concerns as transitory.

Here’s where US indexes stood at the 9:30 a.m. ET open on Thursday:

Weekly jobless claims moved higher on Thursday to 770,000, which was higher than economist estimates of 700,000 and also above last week’s revised number of 725,000.

AMC Entertainment jumped nearly 5% after the company said 98% of its movie theater locations would be open by this Friday.

Bitcoin moved higher on Thursday and flirted with the $60,000 level as Fed Chairman Jerome Powell’s commitment to continue supporting the economy with easy monetary policy fueled inflation concerns, which some investors say bitcoin is a hedge against.

Penny stock trading volume has soared 2,000% in the past year as a surge in retail investors has led to speculative investing in risky trading vehicles.

Oil prices were lower. West Texas Intermediate crude fell as much as 1.9%, to $63.34 per barrel. Brent crude, oil’s international benchmark, dropped by 1.8%, to $66.70 per barrel, at intraday lows.

Gold fell as much as 0.35%, to $1,720.90 per ounce.

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Dow, S&P 500 close at record highs as stimulus-fueled optimism continues

Trader NYSE
Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange on March 18, 2020 in New York.

  • US stocks gained at the close with the Dow reaching a record closing high as investors cheered the passage of the stimulus bill.
  • One strategist says retail investors could buy a record $3 billion of US stocks when they receive stimulus checks.
  • Airline stocks gained after the TSA revealed air travel spiked to its highest level in nearly a year.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks gained at the close with the Dow reaching a record closing high as investors remained optimistic on economic growth following President Biden signing the $1.9 trillion stimulus program into law last week.

Retail investors could buy a record $3 billion of US equities in a single day when they receive their $1,400 stimulus checks from the US government, according to Viraj Patel, global macro strategist at Vanda Research. That could happen as soon as Wednesday or Thursday, when most Americans will start seeing $1,400 deposited into their bank accounts.

Here’s where US indexes stood after the 4:00 p.m. close on Monday:

Shares of major airline companies including American Airlines, United, Delta, and Southwest rose on Monday on optimism of a travel rebound in sight after the Transportation Security Administration revealed that air travel spiked to its highest level in nearly a year.

AMC shares rocketed up 29% extending this year’s stunning run higher as the movie chain will begin reopening theaters in California.

Penn National Gaming jumped to an all time-high of $142 a share on Monday as investors cheered its inclusion in the S&P 500 next week. The Barstool Sports stakeholder has gained almost 3,000% over the last year.

Short-sellers have tripled bearish bets against SPACs to $2.7 billion, from $724 million at the start of the 2021, according to data from S3 Partners amid fears the blank-chec frenzy has gone too far.

Bitcoin pulled back to around $56,500 on Monday after it rose above $61,000 over the weekend. A report said India could fine anyone in the country for even holding such digital assets.

Oil prices fell. West Texas Intermediate crude fell 0.38%, to $65.36 per barrel. Brent crude, oil’s international benchmark, declined by 0.5%, to $68.88 per barrel.

Gold jumped 0.6%, to $1,730.30 per ounce.

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Dow closes at record high, tech falters as traders mull the impact of Biden’s stimulus

Trader

The Dow Jones industrial average closed at a record high on Friday while tech stocks fell as a rise in interest rates fueled a continued rotation into cyclical stocks poised to benefit from a reopened economy.

The yield on the 10-year US Treasury note spiked to 1.64% on Friday, representing a new cycle high since the COVID-19 pandemic began.

The spike in yields came after President Joe Biden signed his $1.9 trillion stimulus package into law, spurring inflationary concerns. Continued progress on the COVID-19 vaccine front also helped support higher bond yields as investors prepare for strong economic growth.

Here’s where US indexes stood at the 4 p.m. ET close on Friday:

Read more: Bank of America lays out 7 ways investors should start preparing portfolios before inflation jumps – and explains why to expect higher consumer prices and interest rates for the foreseeable future

Novavax soared 20% in Friday trades after its COVID-19 vaccine was found to be 96% effective in preventing contraction of the original virus strain.

Shares of Ulta Beauty dropped 10% after its fourth quarter earnings report missed analyst estimates. The firm also gave guidance that didn’t meet analyst estimates, and announced that its CEO Mary Dillon would step down.

GameStop continued its ascension higher on Friday, juming as much as 14% and hitting levels not seen since its epic short-squeeze in late January began to unwind.

Oil prices were lower. West Texas Intermediate crude fell as much as 0.9%, to $65.41 per barrel. Brent crude, oil’s international benchmark, dropped by 0.9%, to $69.03 per barrel, at intraday lows.

Gold fell as much as 1.4%, to $1,699.26 per ounce, before settling slightly higher on the day.

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Nasdaq tumbles sharply as stimulus and vaccine progress send bond yields spiking

Markets Trader Reaction

US tech stocks fell on Friday, giving up most of their Thursday gains as a spike in bond yields led to risk-off sentiment for the sector.

The yield on the 10-year US Treasury note spiked to 1.60% on Friday, just below its recent cycle high of 1.61%.

The spike in yields came after President Joe Biden signed his $1.9 trillion stimulus package into law, spurring inflationary concerns. Continued progress on the COVID-19 vaccine front also helped support higher bond yields as investors prepare for a strong economic reopening in the coming months.

Here’s where US indexes stood at 9:40 a.m. ET on Friday:

Novavax soared 20% in Friday trades after its COVID-19 vaccine was found to be 96% effective in preventing contraction of the original virus strain.

Shares of Ulta Beauty dropped 10% after its fourth quarter earnings report missed analyst estimates. The firm also gave guidance that didn’t meet analyst estimates, and announced that its CEO Mary Dillon would step down.

Oil prices were lower. West Texas Intermediate crude fell as much as 0.9%, to $65.41 per barrel. Brent crude, oil’s international benchmark, dropped by 0.9%, to $69.03 per barrel, at intraday lows.

Gold fell as much as 1.4%, to $1,699.26 per ounce.

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S&P 500, Dow soar to records as stimulus signing extends recovery bullishness

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  • US stocks surged on Thursday as President Biden signed a $1.9 trillion relief package and investors doubled down on a swift recovery.
  • The Dow Jones industrial average and S&P 500 both closed at record highs while surging tech stocks led the Nasdaq to outperform.
  • Weekly jobless claims reached 712,000, marking a sharp decline from the previous week’s sum and beating the median estimate of 725,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US equities gained on Thursday as the president’s signing of a new stimulus bill further lifted hopes for a near-term economic rebound.

The Dow Jones industrial average and S&P 500 both closed at record highs. The Nasdaq composite outperformed as investors snapped up tech stocks that tumbled through last week.

President Joe Biden signed $1.9 trillion in new fiscal stimulus into law on Thursday, extending a new helping hand to households and businesses still shouldering the pandemic’s economic fallout. The plan gives struggling Americans “a fighting chance” in the last stages of the pandemic, Biden said.

The $1,400 payments included in the package will start to hit bank accounts as soon as this weekend, White House press secretary Jen Psaki said.

Here’s where US indexes stood at the 4 p.m. ET close on Thursday:

Read more: Jefferies pinpoints 10 stocks poised to benefit the most from the strongest surge in consumer spending ‘in decades’ – and explains why each one is worth buying

Stocks traded mixed in the previous session as investors wavered between dumping tech names and buying the sector at lower prices. GameStop saw renewed volatility as retail investors fueled a rapid ascent and a just-as-swift decline that triggered six trading halts throughout the day.

The 10-year Treasury yield hovered at 1.53% on Thursday. Investors slowed their retreat from government debt after a key inflation report showed price growth in February landing below economist forecasts.

Economic data published Thursday further supported optimism toward the US recovery. Initial jobless claims for the week that ended Saturday totaled an unadjusted 712,000, according to the Labor Department. The sum is well below the previous week’s revised reading of 754,000 and the consensus economist estimate of 725,000 new claims.

Continuing claims, which track Americans currently receiving unemployment benefits, fell to 4.1 million for the week that ended February 27. That landed below the median estimate of 4.2 million claims.

The report shows a “clear drop” and suggests recent temporary job losses “have been more than offset by a decline in the underlying trend in claims,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said.

“When states re-open, firms which may have been on the brink of layoffs have an incentive to hold onto staff for a while longer, at least,” he added. “We expect this effect to become much more powerful over the next couple of months, and we expect to see jobless claims falling rapidly through the spring.”

Roblox soared for a second straight day following its Wednesday direct listing. Cathie Wood’s Ark revealed it bought more than 500,000 shares of the gaming platform’s stock.

Bitcoin broke above key resistance levels and stabilized above $57,000. The popular cryptocurrency is now roughly $1,000 away from hitting record highs last seen in February.

Spot gold erased early gains and fell as much as 0.43%, to $1,719.30 per ounce. The US dollar weakened against Group-of-20 currency peers.

Oil prices gained. West Texas Intermediate crude rose as much as 2.75%, to $66.21 per barrel. Brent crude, oil’s international benchmark, jumped 2.8%, to $69.83 per barrel, at intraday highs.

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Tech stocks stage sharp rebound as bond yields fall from highs

trader nyse floor yell shout aggressive

US tech stocks staged a rebound on Tuesday after falling into correction territory on Monday, as movements in bond yields continued to have an outsized influence on the sector.

The Nasdaq 100 traded up more than 2% on Tuesday, while the S&P 500 and Dow were both slightly higher in morning trades.

Interest rates fell on Tuesday, with the 10-Year US Treasury Note falling to 1.54% from a high on Monday of 1.59% as more supply in the form of 3-year notes were set to be auctioned on Tuesday.

Here’s where US indexes stood at 9:30 a.m. ET on Tuesday:

Ark Invest’s Cathie Wood is sticking with her strategy of investing in high-growth technology names that are primed for long-term disruptive innovation, according to a Monday afternoon interview with CNBC. Wood said she is even more confident on her top holding, Tesla, following the recent decline and also sees more upside ahead for bitcoin.

But analysts from JPMorgan think investors should stick with the reopening trade and favor value and cyclical stocks over growth and technology stocks, according to a Monday note.

Coinbase, which is set to go public via a direct listing later this month, saw its valuation hit $90 billion in the last private market auction before the listing.

GameStop continued to rally on Tuesday, surging above $200 for the first time since its epic January short-squeeze following Monday’s announcement of activist investor Ryan Cohen leading a committee to transition the video game retailer into an e-commerce company.

Oil prices were higher. West Texas Intermediate crude jumped as much as 0.25%, to $64.92 per barrel. Brent crude, oil’s international benchmark, rose by 0.09%, to $68.36 per barrel.

Gold jumped as much as 2.3%, to $1,715.10 per ounce.

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