Stocks soar on Wall Street as risk appetite returns
Virgin Galactic jumped nearly 28% after the company made its first rocket-powered flight from New Mexico to the outskirts of space in a manned shuttle over the weekend.
Stocks closed broadly higher on Wall Street as investors regained risk appetite after two straight weeks of losses.
The S&P 500 rose 1% on Monday, with technology stocks leading the gains. Microsoft and Google’s parent company rose more than 2%, and the tech-heavy Nasdaq rose 1.4%. Secure sectors like utilities lagged behind the rest of the market. Virgin Galactic jumped nearly 28% after the company made its first rocket-powered flight from New Mexico to the outskirts of space in a manned shuttle over the weekend. Crude oil prices rose more than 3%. The yield on the 10-year Treasury bill fell to 1.60%.
Tech firms lead a large rally on Wall Street in trading afternoon on Monday, as investors regain risk appetite after the market posts two straight weeks of losses.
The S&P 500 Index was up 1.3% at 2:52 p.m. EST. The Dow Jones Industrial Average rose 247 points, or 0.7%, to 34,453 and the highly technological Nasdaq Composite rose 1.7%.
Tech stocks were a big part of the market rally, with semiconductor companies among the big winners. Nvidia and Micron Technology grew by more than 3%. Communications stocks like Facebook and various companies that rely on direct consumer spending also made strong gains. Sectors considered safer investments, such as utilities, have fallen behind the market in general.
Investors continue to watch for potential signs of inflation as the economic recovery continues in the final days of the coronavirus pandemic in the United States.
At this point, the earnings season is nearing its end and companies are posting strong results for the first quarter. This has helped reaffirm Wall Street’s view that the economic recovery is strong. It has also helped justify some of the expensive values of stocks in several industries, especially tech. Investors will receive results from Dell and Salesforce.com this week, among a few others.
“Now we realize that there is still dramatic growth in earnings and fundamentals from technology and communications and growth stocks in general,” said Ryan Detrick, chief market strategist for LPL Financial.
There are only a handful of economic reports this week, including monthly home sales. Investors will have another read on inflation on Friday in the form of the Commerce Department’s Consumer and Personal Expenditure Index. The “Core PCE”, as it is called, is the preferred method by Federal Reserve policymakers for measuring inflation in the United States instead of the more well-known Consumer Price Index reported earlier. in the month.
Economists polled by FactSet expect Core PCE to be up 3% from a year ago, which would be above the Federal Reserve’s inflation target level.
“We all expect inflation to rise because of year-over-year comparisons,” Detrick said. “The number will be higher, but the question is whether it will be hotter than expected.”
The yield on the 10-year Treasury bill fell to 1.61% from 1.63% on Friday.
Digital currencies like Bitcoin were once again volatile after falling for the past two weeks. Bitcoin climbed 16.3% to around $ 38,033, according to Coindesk. It was worth almost $ 65,000 a month ago.
Virgin Galactic jumped 24.5% after the company made its first rocket-powered flight from New Mexico to the outskirts of space in a manned shuttle over the weekend.
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