GLOBAL MARKETS-Tech rally leads S&P to record high as Treasury yields dip, dollar softens

The Nasdaq led the way, advancing more than 1%, but the blue-chip Dow's gain was more modest. "It's a little bit of a Fed-driven day going back to their comments yesterday of rates remaining low for an extended period of time - we’re seeing interest rate-sensitive stocks like technology benefiting from that," said Jeff Carbone, managing partner at Cornerstone Wealth in Huntersville, North Carolina.

Reuters | Updated: 09-04-2021 02:09 IST | Created: 09-04-2021 02:08 IST
GLOBAL MARKETS-Tech rally leads S&P to record high as Treasury yields dip, dollar softens
Representative Image Image Credit: Pixabay

A tech rally pushed the S&P 500 to an all-time closing high on Thursday and Treasury yields extended their pull-back from recent peaks as market participants digested the U.S. Federal Reserve's vow to stay the course with its dovish monetary policy. The Nasdaq led the way, advancing more than 1%, but the blue-chip Dow's gain was more modest.

"It's a little bit of a Fed-driven day going back to their comments yesterday of rates remaining low for an extended period of time - we're seeing interest rate-sensitive stocks like technology benefiting from that," said Jeff Carbone, managing partner at Cornerstone Wealth in Huntersville, North Carolina. "There are really no major drivers right now" until earnings season starts next week, he added.

European stocks closed at record highs on growing optimism about a global stimulus-driven economic revival and reassurances from the Fed. "Europe has not been able to get out of its own way for a long time," said Jamie Cox, managing partner for Harris Financial Group in Richmond, Virginia. "It's nice to see it pick up a bit.

"Now is the time for value stocks, and European indices are chock full of them," Cox added. Minutes of the Fed's last policy meeting, published on Wednesday, showed board members felt the economy was still short of target and reiterated their accommodative monetary stance.

"The Fed have said they are watching inflation and took the air out of the situation quite a bit," Cox said. "The market got what it wanted out of the Fed." Fed Chairman Jerome Powell expanded on that topic on Thursday at an International Monetary Fund event, saying that while the economic reopening could result in a momentary surge in prices, he expects it to be temporary and it will not constitute inflation.

A report from the U.S. Labor Department showed jobless claims unexpectedly increased last week, a blemish among a string of otherwise upbeat recent economic data. The Dow Jones Industrial Average rose 57.31 points, or 0.17%, to 33,503.57, the S&P 500 gained 17.22 points, or 0.42%, to 4,097.17 and the Nasdaq Composite added 140.47 points, or 1.03%, to 13,829.31.

The pan-European STOXX 600 index rose 0.58% and MSCI's gauge of stocks around the globe gained 0.48%. Emerging market stocks rose 0.34%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.55% higher, while Japan's Nikkei lost 0.07%.

U.S. Treasury yields fell on Thursday, pressured by Powell's dovish comments and weaker-than-expected initial weekly jobless claims. Benchmark 10-year notes last rose 9/32 in price to yield 1.6244%, from 1.654% late on Wednesday.

The 30-year bond last rose 13/32 in price to yield 2.3168%, from 2.336% late on Wednesday. The dollar dropped to a two-week low against a basket of currencies, tracking Treasury yields following the surprise rise in U.S. unemployment applications.

The dollar index fell 0.42%, with the euro up 0.36% to $1.1913. The Japanese yen strengthened 0.54% versus the greenback at 109.28 per dollar, while sterling was last trading at $1.3733, down 0.01% on the day.

Crude oil prices were little changed as Wall Street's rally and the soft dollar offset concerns over a big jump in U.S. gasoline stocks. U.S. crude fell 0.28% to settle at $59.60 per barrel, while Brent settled at $63.20 per barrel, up 0.06% on the day.

Gold prices jumped, scaling a one-month peak as the Fed's assurances that it will maintain its accommodative policy weighed on Treasury yields and the greenback. Spot gold added 1.1% to $1,756.36 an ounce. U.S. gold futures settled up about 1% at $1,758.2.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

U.S. set to slap new sanctions on Russia as soon as Thursday -sources

The United States will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity, targeting several individuals and entities, people familiar the matter said. The sanctions, in which 30 ...

'Covaxin' doses go missing from Jaipur hospital, FIR registered

320 doses of Bharat Biotechs COVAXIN went missing from the cold storage of Hari Bux Kanwatia Government Hospital in Jaipur on Wednesday. An FIR has been registered in the Shastri Nagar police station as vaccines went missing. There is a sys...

FEATURE-Armed with phones and seeds, jobless Kenyans tackle illegal logging

Project uses satellite feeds, maps and mobiles to track deforestation Locals hired to patrol forests and replant trees Forest covers 7 of Kenya, which is aiming for 10 by 2022 By Kagondu NjagiKWALE, Kenya, April 15 Thomson Reuters Foundat...

Coronavirus: 9 samples of UK mutant strain, 4 double mutant found in Jharkhand

Nine samples of UK mutant strain and four of the double mutant variant of coronavirus were found in Jharkhand on Wednesday. According to an official release of the Jharkhand government, eight UK mutant samples were from Ranchi and one was f...

Give Feedback