NEW YORK (Reuters) – The S&P 500 and Dow Jones industrial averages hit highs on Tuesday as cyclical sectors received more fiscal support to lift the U.S. economy from a coronavirus-led decline.
The Nasdaq, however, fell as technology stocks moved lower.
The sectors that benefited most from a reopening economy, including energy and finance, were the biggest beneficiaries. President Joe Biden has unveiled a $ 1.9 trillion pandemic relief bill and is pushing Congress to pass in the coming weeks to get $ 1,400 incentive studies for Americans and support payments unemployment.
The S&P 500 banking index jumped 3.2% as yield on the 10-year U.S. Treasury hit its highest level since February 2020.
“The trade reflation continues to push equity markets across all industries and multi-currencies … and this rally could continue soon,” said Tony Bedikian, head of global markets at Citizens Bank in Boston.
Posting facilities and buildings, on the other hand, was the largest percentage loss among S&P 500 sectors, while technology stocks also slipped. Facilities and property, due to their stable earnings and large yields in shares, are often regarded as bond agents and tend to move alongside Finance.
The technology sector includes many stocks with high earnings margins, which could come under pressure with rising yields, according to some market analysts.
The S&P 500 rebounded from session highs as yields rose Tuesday, reflecting investor concerns about the day’s rise in bond yields, said Robert Phipps, director at Per Stirling Capital Management in Austin, Texas. . Rates could accept a gradual rise in rates, but a higher sprint could create disruption, in his opinion.
“While interest rates remain very low, the stock market will be sensitive to change,” he said.
The Dow Jones industrial average rose 97.56 points, or 0.31%, to 31,555.96, the S&P 500 gained 3.79 points, or 0.10%, to 3,938.62 and the Nasdaq Composite fell 25.65 points, or 0.18%, to 14,069.83.
A sharp decline in new coronavirus infections, advances in vaccinations and a fourth-quarter employment season are stronger than expected confirming a sharp recovery hopefully this year.
This week’s earnings reports from Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., Marriott International Inc., Norwegian Cruise Lines and TripAdvisor Inc will be closely monitored for construction signals in global travel demand.
Shares of cryptocurrency and blockchain-related companies including Silvergate Capital Corp., Riot Blockchain and Marathon Patent Group jumped between 8% and 21% as bitcoin briefly climbed above $ 50,000.
Investors will also focus this week on the minutes from the Federal Reserve meeting in January, where it reaffirmed its commitment to maintaining a dovish policy stance.
Forwarding cases higher than those of the NYSE with a 1.04-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio of promoters was preferred.
The S&P 500 raised 75 new 52-week highs and no new levels; the Nasdaq Composite recorded 363 new highs and nine new lows.
Reciting with April Joyner; Additional statement by Devik Jain and Shreyashi Sanyal in Bengaluru; Edited by Saumyadeb Chakrabarty and Cynthia Osterman