Stability in bond market helps lift major US stock indexes | National News
Stocks notched broad gains on Wall
Stocks notched broad gains on Wall Street in afternoon trading Tuesday as a pullback in bond yields sparked a rally in beaten-down technology companies.
People walk by an electronic stock board of a securities firm in Tokyo, Wednesday, March 10, 2021. Shares are higher in Asia after gains for major tech companies powered a 3.7% surge in the Nasdaq, the largest jump for the index in four months.
A man walks by an electronic stock board of a securities firm in Tokyo, Wednesday, March 10, 2021. Shares are higher in Asia after gains for major tech companies powered a 3.7% surge in the Nasdaq, the largest jump for the index in four months.
People walk by an electronic stock board of a securities firm in Tokyo, Wednesday, March 10, 2021. Shares are higher in Asia after gains for major tech companies powered a 3.7% surge in the Nasdaq, the largest jump for the index in four months.
People walk by an electronic stock board of a securities firm in Tokyo, Wednesday, March 10, 2021. Shares are higher in Asia after gains for major tech companies powered a 3.7% surge in the Nasdaq, the largest jump for the index in four months.
FILE – American flags hang outside of the New York Stock Exchange, in this Tuesday, Feb. 16, 2021, file photo. Technology companies are off to another good start on Wall Street, a day after powering a 3.7% surge in the Nasdaq. The gains early Wednesday, March 10 were more moderate, with the Nasdaq up 1% and the broader S&P 500 up 0.6%.
Major U.S. indexes are moving higher Wednesday as stability in the bond market translates into gains for stocks.
A key measure of inflation was lower than expected last month, helping to calm investors who had worried that prices could rise too quickly as the economy recovers.
The S&P 500 index rose 0.7% as of 12:21 p.m. Eastern. The Dow Jones Industrial Average rose 377 points, or 1.2%, to 32,205 and the technology-heavy Nasdaq rose 0.4% following a jump of 3.7% on Tuesday.
U.S. consumer prices increased 0.4% in February, the biggest increase in six months. However, a closely watched measure called core inflation, which excludes food and energy prices, posted a much smaller 0.1% gain. The rise for core inflation was also below economists’ expectations.
The latest report on inflation, along with the Federal Reserve remaining dovish on raising interest rates, has helped ease concerns over the recent rise in bond yields, said Katie Nixon, chief investment officer at Northern Trust Wealth Management.
Bond yields rose sharply over the past month due to expectations for faster growth and the inflation that could follow. The fall in bond prices attracted investors reluctant to pay high prices for stocks, especially tech stocks that looked most expensive.