The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite closed higher on Monday, extending last week’s gains. This is a sign that the markets are still optimistic about recent positive economic data.
The “us stock market news” is the latest update on the U.S. stock market. The “Stocks Close Higher, Extending Last Week’s Gains.”
As investors shrugged aside fears that increasing inflation would pull the country’s economy into a recession, equities in the United States climbed and government bond rates surged.
Tuesday’s moves had all three U.S. indexes up at least 2.6% for the month so far, building on last week’s gains. The Dow Jones Industrial Average rose 254.47 points, or 0.7%, to close at 34807.46. The S&P 500 climbed 50.43, or 1.1%, to 4511.61. The Nasdaq Composite closed at 14108.82, up 270.36, or 2.0%.
Nike’s stock rose when the company announced sales that above analysts’ forecasts. Investors returned to faster-growing businesses whose shares had been pummeled earlier this year, and technology stocks climbed as well.
“You’re beginning to see a little bit of the revenge of growth stocks,” said Wayne Wilbanks, co-founder and chief investment officer of Wilbanks Smith & Thomas Asset Management LLC. “Prices have collapsed, so valuations have gotten much better, to the point where that outweighs interest-rate concerns.”
On Monday, market indexes fell after Federal Reserve Chairman Jerome Powell suggested the central bank was willing to increase interest rates in half-percentage-point increments if required to keep inflation under control. Investors, on the other hand, saw Mr. Powell’s remarks as a vote of confidence in the economy’s prospects by Tuesday morning.
“The message from last week’s [Fed] meeting is that they’re going to tighten [monetary policy], but the US economy is sturdy enough to handle it,” said Huw Roberts, head of analytics at Quant Insight, a data analytics business. “The equity market elected to place a premium on economic resiliency.”
Shares of banks and other financial institutions that stand to profit from higher long-term interest rates rose on Tuesday. The price of oil has risen, fallen, and then reversed three times.
The selloff in government bonds accelerated, with the 10-year Treasury note yielding 2.375 percent, up from 2.315 percent on Monday. The benchmark note’s yield has now reached its highest level since May 2019, just before the Covid-19 epidemic threw financial markets into a loop. When bond prices fall, yields climb.
Brent oil futures, the worldwide benchmark, dipped 0.1 percent to $115.48 a barrel on the energy markets. Brent prices dipped below $100 last Thursday before reversing. Within the European Union, support for a ban on the purchase of Russian oil is rising, heightening the risk of ongoing instability.
“Today’s market leadership is a mixed bag,” said John Lynch, Comerica Wealth Management’s chief investment officer. “The stock market seems calm, but the bond market is everything but.”
Volatility has been whipsawing stocks, bonds, commodities, and currencies for the last month as investors try to estimate the economic consequences from Russia’s conflict in Ukraine. The tech-heavy Nasdaq Composite finished Tuesday with a change of 1% or more for the 39th time this year, marking the most volatile quarter since the first three months of 2009.
Many investors have expressed concern that the conflict would keep inflation high and stifle economic development in the United States and Europe.
However, investors were dealt a fresh surprise this week when Mr. Powell struck a harder tone than he did when the Fed raised interest rates from near zero last week. He emphasized the Fed’s uncertainties and said that if necessary, the Fed would adopt a more restrictive approach.
On Monday, traders worked on the New York Stock Exchange’s floor.
BRENDAN MCDERMID/REUTERS/BRENDAN MCDERMID/REUTERS/BRENDAN MCDERMID/REUT
Some experts and investors have revised their interest-rate forecasts as a result of the remarks. Following Mr. Powell’s comments, Goldman Sachs economists said in a note that they now anticipate half-percentage-point rises at both the Fed’s May and June meetings. This compared to earlier forecasts of quarter-percentage-point rises at both sessions.
Investors are concerned that the Fed would tighten more swiftly now that the economy is weakening, as a result of Monday’s remarks. Mr. Roberts said, “The great variable today is the economic development side of things.”
Many investors are keeping a careful eye on the yield curve, which gauges the difference between short and long-term interest rates and is often seen as a leading indication of investor sentiment about the economy’s prospects. The yield spread between shorter- and longer-term US Treasury notes has been narrowing recently, raising fears that the bond market is on the verge of indicating a future recession.
The two-year Treasury yield, which is particularly sensitive to monetary policy shifts, increased to 2.152 percent on Tuesday from 2.132 percent the day before.
Shares of banks rose. Financial stocks helped lead the S&P 500’s gains, with the sector rising about 1.6%. Wells Fargo jumped $2.25, or 4.4%, to $53.39, while Signature Bank rose $10.30, or 3.3%, $321.18.
Nike closed at $133.09, up $2.90, or 2.2 percent.
“Nike is the ideal global firm,” says Jack Ablin, chief investment officer at Cresset Capital. “They sell and source all over the globe.” “It’s a terrific indicator, and they put a lot of investors’ minds at ease.”
For decades, an inversion of the US Treasury yield curve has been seen as a recession warning sign, and it seems that it is poised to flare up once again. Dion Rabouin of the Wall Street Journal discusses why an inverted yield curve is so good at forecasting recessions and why market observers are talking about it today. Ryan Trefes’ illustration
Stocks in the communications and technology industries also rose. Etsy increased by $5.98 to $148.25, while Match Group increased by $4.28 to $104.31. According to Dow Jones Market Data, Amazon.com has risen for the sixth day in a row. The stock ended the day up $67.95, or 2.1 percent, at $3,297.78.
After a hacker gang tweeted pictures claiming to prove that it had acquired access to Okta.com’s administrator and other systems, Okta slid $2.98, or 1.8 percent, to $166.43. A preliminary review showed no indication of malicious behavior, according to the business, which added that the screenshots were most likely tied to a January security problem.
Bitcoin was trading about $42,611 at 5 p.m. ET on Monday, up nearly 3.5 percent. The cryptocurrency’s price has bounced dramatically over the previous month, but has remained mainly over $40,000 since the middle of last week.
The Stoxx Europe 600 index rose 0.9 percent in Europe, marking the sixth consecutive day of gains.
The Hang Seng in Hong Kong surged 3.2 percent, while the Nikkei 225 in Japan increased 1.5 percent. The Shanghai Composite Index in China increased by 0.2 percent.
Corrections & Amplifications The Nasdaq Composite rose 270.36 points Tuesday, while shares of Wells Fargo closed at $53.39. An earlier version of this article incorrectly said the Nasdaq index had risen 20.36 points and that Wells Fargo shares closed at $52.39. (Corrected on March 22.)
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The Dow futures are now trading higher this morning, extending last week’s gains. The Nasdaq is also seeing gains in the early hours of the day. Reference: dow futures now.
Frequently Asked Questions
What stocks are up this week?
A: Apple, Amazon and Microsoft have made a remarkable comeback this week. All three stocks are up by around 10% in the last few days.
What stock has the biggest gain in one day?
A: Apple Inc. (NASDA
Do stocks usually go up before close?
A: For the most part, stocks do usually go up before close. This is due to investors taking advantage of early access to shares in order to make a profit on future share price increases.
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