US stock indices reversed trend Tuesday in the face of a recovery of technology companies, while the investors they felt comfortable with Federal Reserve Chairman Jerome Powell’s testimony before Congress, which did not deliver big surprises.
Shares closed higher on Tuesday as tech companies rallied after an initial loss. According to the preliminary closing, the Industrial Average Dow Jones it rose 186.58 points, or 0.52%, to 36,255.45 points; the S&P 500 gained 42.48 points, or 0.93%, to 4,713.61 units, and the Nasdaq Composite it advanced 208.85 points, or 1.41%, to 15,153.89 points.
The yield on the 10-year Treasury bond fell to 1.74%. Bond yields have risen sharply since the beginning of the year. Investors expect interest rates to rise in the coming months, as the Federal Reserve goes from stimulating the economy to fighting inflation.
Powell said the central bank’s plans to tightening monetary policy this year were not undermining strong employment in an economy that “He no longer needs or wants” a massive stimulus.
The index S&P 500 broke a five-day fall, while the Nasdaq would extend Monday’s earnings, as big tech stocks rose after being hit by higher bond yields.
Six of the top 11 S&P 500 sectors rose, with areas of great growth such as technology and communication services among the best performing.
Companies like Apple Inc. , Amazon.com Inc. , Microsoft Corp, Tesla and Meta Platforms Inc. were earning as much as 2 percent.
“The reaction we’re getting today is a reflection of things we already know,” said Art Hogan, chief market strategist at National Securities in New York. * The S&P 500 Index broke a five-day slide, while the Nasdaq extended Monday’s gains as big tech stocks rose after being hit by rising bond yields.
Equity markets have been hit since the beginning of this year after the minutes of the December Fed meeting noted an earlier than expected rise in interest rates due to mounting inflationary pressures.
(With information from Reuters)