S&P 500 Pares Losses on Energy Rally, Dip-Buying in Tech
Investing.com | Author Yasin Ebrahim
Published Oct 05, 2022 02:53PM ET
By Yasin Ebrahim
Investing.com -- The S&P 500 pared some losses Wednesday, driven by rising energy stocks and dip-buying in tech despite Federal Reserve officials pushing back against the idea of the pause on rate hikes.
The S&P 500 fell 0.1%, the Dow Jones Industrial Average was flat, or up 10 points points, and the Nasdaq was down 0.3%.
San Francisco Federal Reserve President Mary Daly said that the Fed’s goal to keep tightening monetary policy until interest rates are at a restrictive level “hasn’t really changed,” easing investor bets on a Fed pivot.
Interest rates had reached a point that was potentially a “little bit restrictive, or just at neutral,” Daly added, though insisted that “more rate increases [was] necessary” to bring inflation down.
The ongoing hawkish remarks from the San Francisco Fed president arrived as data showed U.S. services activity rebounded by more than expected in September, pointing to underlying economic strength.
Treasury yields climbed, but tech stocks fought back from session lows as dip buyers helped big tech move off session lows.
A climb in chip stocks also supported the broader move off the lows in tech, with Marvell Technology Group Ltd (NASDAQ:MRVL) and Taiwan Semiconductor Manufacturing (NYSE:TSM) up more than 2%.
Twitter Inc (NYSE:TWTR), meanwhile, fell 0.7% after rallying more than 22% a day earlier as the social media giant confirmed Tuesday that Musk had agreed to revive the deal to buy the company for $54.20.
The deal is expected to close “without any major issues over the next few weeks,” Wedbush said in a note, though noted that now the “hard part will be fixing it [Twitter] with monetization and subscriber engagement.”
Tesla Inc (NASDAQ:TSLA), however, fell more than 3% on expectations that Musk will have to sell more Tesla shares to fund the $44 billion Twitter deal.
As well as a fall in Tesla, consumer discretionary stocks were also weighed down by weakness in cruise line stocks.
Carnival Corporation (NYSE:CCL) fell 5%, while Royal Caribbean Cruises (NYSE:RCL), Norwegian Cruise Line Ltd (NYSE:NCLH) were down more than 3%.
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.