|
|
By Alex
Eule | Monday, March 1 Yielding
Gains. The inflation fears
that have gripped the market in recent weeks seems to have let up for now,
with bond yields falling for a second consecutive day. The 10-year
Treasury yield has fallen to 1.44% over the last two days, after hitting
a 52-week high of 1.51% last Thursday. That's not a small move in the
world of Treasury bonds, and it has caused growth investors to exhale. The Nasdaq
Composite jumped 3%, thanks to a recovery in
high-priced tech stocks that had been crushed by those rising rates. Shares
of Apple rose 5.4% on the day, while Tesla was up 6.4%. Stay-at-home stalwart Zoom
Video rose
nearly 10% on the day. (It was up another 9% in late trading
after the video conferencing company reported better-than-expected
fourth-quarter earnings.) Often in the
recent past, a big day for tech stocks meant investors were hiding from
the more economically sensitive re-opening plays. But today even
those stocks were doing fairly well. The NYSE
Arca Airline Index rose nearly 4% this
morning, before closing up 1.1%. Department stores Nordstrom and Kohl's rose 4.1% and 3%, respectively. The
re-opening plays got a boost from the U.S. approval of Johnson
& Johnson's one-shot Covid-19
vaccine, giving the country a third
vaccination choice. The distribution efforts were already
under way by this morning. While the
vaccine is restoring hopes of travel, investors are also
anticipating the economic boom from another Covid stimulus bill, which
could pass Congress in short order. On Sunday, Democrats decided to drop the
minimum-wage increase component of the bill. A version being debated by the
Senate would still put another $1,400 into the hands of many American
consumers, while extending unemployment benefits and sending significant
aide to state and local governments. The
broad-based S&P 500 rose 2.4% on the day, its best one-day
performance since last June. Some 460 stocks in the index finished
in positive territory on the day. |
|
|
DJIA: +1.95% to 31,535.51 The Hot
Stock: Dentsply
Sirona +12.5% Best Sector:
Technology +3.2% |
No comments:
Post a Comment