Nasdaq Racks Up More Gains as Bond Yields Head Lower
Investing.com
Published Mar 22, 2021 01:22PM ET
Updated Mar 22, 2021 03:35PM ET
By Yasin Ebrahim
Investing.com – The Nasdaq climbed Monday as falling U.S. bond yields prompted fresh buying of tech stocks after last week's rout.
The Dow Jones Industrial Average rose 0.35%, or 115 points, the S&P 500 was up 0.35%, while the Nasdaq Composite was up 1.46%.
The United States 10-Year yield fell below 1.7% following a surge to 14-month highs last week, driven by technical factors that analysts say pushed rates too high too fast and will likely continue to subside.
The recent price action has been driven by overnight selling and U.S. banks holding back demand - all of which are "likely to temper or reverse," Morgan Stanley (NYSE:MS) said in a note.
Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN) and Google-parent Alphabet (NASDAQ:GOOGL) were in the green.
Tesla (NASDAQ:TSLA), meanwhile, also helped prop up the Nasdaq after rallying 5% in the wake of a bullish note from ARK fund manager Cathie Wood. Wood estimated that Tesla shares will rise to $3,000 by 2025.
iShares PHLX Semiconductor ETF (NASDAQ:chip stocks) inched higher despite ongoing supply-issues in the industry.
The decline in rates, however, triggered selling of rate-sensitive bank stocks, pushing financials and the broader value sector lower.
Sentiment on value stocks – those which tend to rise in an improving economy – was also dented somewhat by a third wave of Covid-19 in Europe that threatens global demand.
United Airlines Holdings (NASDAQ:UAL), Delta Air Lines (NYSE:DAL) and American Airlines Group (NASDAQ:AAL) fell into the red, with the latter down about 4%, shrugging off data showing U.S. air travel hit one-year high.
The Transportation Security Administration said that it screened 1.5 million people on Sunday, the highest number of passengers it has seen on a single day since March 13 of last year.
Energy stocks were paced by a sluggish oil prices as investor jitters that lockdowns across Europe will stifle air travel, hurting demand for jet fuel.
In other news, U.S.-China trade tensions appear to be on the rise again after the U.S. imposed sanctions against two Chinese officials over alleged human rights abuses. The move came as the European Union, the United Kingdom and Canada took similar action against China.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.