DJIA: 34,921.88, up 103.61
S&P 500: 4,582.64, up 36.78
Nasdaq: 14,532.55, up 271.05
Stocks climb amid bounce in tech shares
U.S. stocks finished higher on Monday amid a relief rally in recently beleaguered tech and growth-related shares. The Nasdaq Composite surged 1.9%, climbing out of correction territory (defined as a 10% decline from a recent peak). The S&P 500 advanced 0.8%, back within 4.5% of its January 3 record. Both benchmarks just notched their first three-week winning streak since November. The Dow added 103 points. In commodities, West Texas Intermediate crude rebounded 4.3% to $103.54/barrel following its worst week since April 2020.
Seven of 11 S&P 500 sectors closed in negative territory, with Utilities and Health Care the worst performers. Consumer Discretionary, Communication Services, and Technology were the standouts, amid strength in mega-cap shares. In corporate news, Twitter Inc. soared 27.2% after Tesla Inc.’s Chief Executive Officer (CEO) Elon Musk reported a 9.2% stake in the company. Meanwhile, shares of Tesla Inc. gained 5.6% after posting record vehicle deliveries during the first quarter. Elsewhere, Starbucks Corp. retreated 3.9% following a decision to suspend its stock buyback program in order to increase spending on its stores and employees.
Meanwhile, Wall Street continued to monitor an inverting Treasury yield curve. The yield on the two-year note was down four basis points (0.04%) to 2.41%, still higher than the 10-year note yield, which advanced three basis points (0.03%) to 2.40%. This week, the release of the Fed’s March meeting minutes will headline the economic slate on Wednesday. On the data front today, factory orders dipped 0.5% in February, while final readings confirmed both durable and capital goods orders declined during the month.
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