Stock Market Today: Dow Ends Losing Streak as Tech Sidesteps Larger Rate-Hike Bets
Investing.com | Author Yasin Ebrahim
Published Sep 09, 2022 04:15PM ET
By Yasin Ebrahim
Investing.com -- The Dow snapped a three-week losing streak Friday as technology sidestepped the ongoing chorus of hawkish Federal Reserve remarks that have pushed up the odds of a larger September rate hike and extended the melt-up in Treasury yields.
The S&P 500 rose 1.5%, the Dow Jones Industrial Average gained 1.2%, or 377 points, the Nasdaq was up 2.1%.
Big tech and chip stocks combined to help push the broader tech sector more than 2% higher even as the latest remarks from Fed officials continued the trend of rising treasury yields, which is typically a drag on tech.
Federal Reserve Governor Christopher Waller called for “another significant increase in the policy rate,” later this month.
The remarks arrived just a day after chairman Jerome Powell vowed to persist with rate hikes “until the job [on reducing inflation] is done.”
The hawkish wave of remarks from Fed officials this week has pushed the odds of a 75-basis point rate hike to 91% from 57% the prior week, according to Investing.com’s Fed Rate Monitor Tool.
Energy also played a big role in the broader market melt-up helped by advancing oil prices following recent reports suggesting the Biden administration is mulling whether to stop releasing oil from the U.S. Strategic Petroleum Reserve after October.
Halliburton Company (NYSE:HAL), EOG Resources Inc (NYSE:EOG), and Baker Hughes Co (NASDAQ:BKR) led the gains in energy, with the latter up more than 5%.
The earnings front also provided ammunition for bullish bets on stocks as Docusign and Zscaler surged.
Zscaler (NASDAQ:ZS) reported quarterly results that topped Wall Street estimates on both the top and bottom lines, sending its shares up more than 21%.
DocuSign (NASDAQ:DOCU), meanwhile, delivered a better-than-expected Q3 outlook after reporting second-quarter results that were ahead of estimates.
In other news, construction equipment maker Caterpillar (NYSE:CAT) said it had reached a settlement to resolve a multiyear tax dispute with the Internal Revenue Service.
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