* Ulta Beauty falls as expected revenue declines
* Criterion 10-year bond yields hit one-year high
* The Nasdaq and S&P 500 post the best week in five (Adds 4 pm close)
NEW YORK, March 12 (Reuters) – The Dow-chip Dow held power to its fifth consecutive high record on Friday as investors bought shares that should benefit from the strong reopening of the U.S. economy, a view that is marked with rising productivity in the bond market.
The tech-heavy Nasdaq fell after going back more than 6% over the past three sessions and the S&P 500 closed smoothly after hitting a high in the previous session as which Treasury yields revived inflationary concerns.
The Nasdaq and S&P 500 posted their best week in five after President Joe Biden enacted law on Thursday one of the largest U.S. fiscal stimulus bills and confirmations confirmed by data that the economy is improving greatly.
The recent rise in U.S. Treasury yields has raised fears of a sharp decline in monetary stimulus and put pressure on Wall Street in recent weeks.
Yields on the 10-year note hit the 1.642% benchmark on Friday, the highest level since February last year.
The rising and falling Dow Nasdaq shows continued sales in technology as investors buy revolving and underground value stock that is expected to do well as the economy recovers. recovering.
For tech stocks to continue to thrive you need low rates, and indeed slower growth, said Thomas Hayes, chairman and managing member of hedge fund Great Hill Capital LLC.
But with the stimulus package the economy is likely to expand 7% to 9% this year with flat rates of pressure, he said.
“That’s why you’re seeing rates rise today as the reopening is happening faster and stronger than expected. And that’s when value and economically sensitive cycles and stocks perform better, ”said Hayes.
The rapid rollout of vaccines and increased fiscal support have raised concerns about inflation despite a commitment by the Federal Reserve to maintain an accommodation policy. All eyes will be on the central bank’s policy meeting next week for further views on inflation.
U.S. consumer sentiment improved in early March to the strongest level in a year, a study by the University of Michigan showed Friday.
Officially, the Dow Jones industrial average rose 291.74 points, or 0.9%, to 32,777.33, the S&P 500 gained 3.98 points, or 0.10%, to 3,943.32 and the Nasdaq Composite fell 78.81 points, or 0.59%, to 13,319.87.
The Nasdaq has been particularly hit by sell-offs in recent weeks and confirmed a correction earlier in the week when investors exchanged high-value technology stocks with stocks of energy, mining companies. and businesses that are poised to reap more benefits from economic recovery. .
Value stocks rose as growth stock declined in a circulation that began at the end of last year.
The group fell high-flying stock but was aware of yields including Facebook Inc, Apple Inc, Amazon.com Inc, Netflix Inc, Google-parent Alphabet Inc, Tesla Inc and Microsoft Corp, which prompted this year’s rally to gone.
Tech, communications services and consumer selective indexes, which include these mega-cap stocks, have slipped among the top S&P categories.
The bank’s index jumped, as finance and businesses took new levels.
Ulta Beauty Inc fell after the cosmetics retailer forecast annual revenues below estimates, as demand for manufacturing products came under pressure as a result of expanded work-from-home policies.
US-listed shares of China-based JD.com Inc. slipped after three sources said it is in talks to buy part or all of a buyout in Sinolink Securities worth $ 1.5 billion.
Reporting by Herbert Lash in New York Further report by Medha Singh, Shashank Nayar and Sagarika Jaisinghani in Bengaluru Edited by Maju Samuel and Matthew Lewis