Industry
The S&P 500 rose on Wednesday and the Dow-chip hit its highest level after tight consumer price data for February worried inflation and lawmakers gave final approval to one of the biggest economic stimulus measures largest in U.S. history.
PHOTO FILE: Servants are seen inside a trading post on the trading floor as they prepare to return to trading at the New York Stock Exchange (NYSE) in New York, USA, May 22, 2020. REUTERS / Brendan McDermid
REUTERS: The S&P 500 rose Wednesday and the Dow-chip hit its highest level after tight consumer price data for February raised inflation concerns and Congress finally approved one of the stimulus measures largest economic event in U.S. history.
There was a shift into sectors such as energy and finance, both in small and large stocks, as investors pledged on consumer spending as the U.S. economy unveils its big technical names. promoting the rally from March last year.
Expected economic boost once the coronavirus vaccines are rolled out along with monster fiscal stimulus has fueled inflation fears and a spike in Treasury yields, leading the Nasdaq dipped as much as 12per percent from its record at Feb. 12 close.
But an auction of US $ 38 billion in 10-year benchmark pounds was not as bad as feared as core inflation remained silent, helping to push yields down to a session low of 1.506per per cent .
The market seemed “undeveloped and Finance accumulated but that was unlikely to boost technology (stocks),” said Mark Luschini, chief investment strategy at Janney Montgomery Scott.
Rising productivity has put pressure on technology sectors as they rely on cheap funding for growth.
Investors are shifting money from high-value technical stocks to other entities, such as energy and finance, which are undervalued and playing a better role in a world-class economy. post-COVID than is big technology, said Peter Tuz, president of Chase Investment Advisor in Charlottesville, Virginia.
“It happens in fits and starts,” Tuz said. “That’s definitely the awful topic in the market right now and it might continue until those things run their course.”
When they moved away from Apple Inc., Amazon.com Inc., Facebook Inc., Tesla Inc and Microsoft Corp, all down the day, small-cap stocks rose more than twice the gains of the S&P 500.
Also helping build-up are rising estimates for U.S. corporate profit this year after surprisingly strong fourth-quarter earnings and growing optimism about the recovery.
Officially, the Dow Jones industrial average rose 1.45per percent to finish at 32,295.71 points, while the S&P 500 gained 0.60per percent to 3,898.73. The Nasdaq Composite fell 0.04per percent to 13,068.83.
Shares of Roblox Corp jumped 54per percent at one point in their first trading session on the New York Stock Exchange, valuing the U.S. games company at more than US $ 42 billion and making it one of the best stocks operator on the NYSE.
The Nasdaq closed lower in choppy trading after recording its best one-day percentage jump in four months on Tuesday.
The US $ 1.9 trillion COVID-19 relief bill by the U.S. House of Representatives gave its first major impact in office to President Joe Biden.
Some US $ 1,400 in payments going to most Americans could go to the stock market and could boost GameStop and other stocks that are popular with buyers. -investor active in online social media forums.
Trading in GameStop was moving wildly after several NYSE trading stops as shares of the video game vendor and other so-called meme stocks approached the levels last seen at the end of January rally.
Among other “meme” stocks, Koss Corp rose, rising as much as 70per percent before the bell.
(Reporting by Karen Pierog in Chicago, Herbert Lash in New York, and Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel and Lisa Shumaker)