Stocks have moved mostly higher over the course of morning trading on Tuesday, with the tech-heavy Nasdaq showing a substantial rebound after posting a steep loss in the previous session. The S&P 500 and the Dow have also moved to the upside.
Currently, the major averages are all firmly positive, although the Nasdaq is outperforming its counterparts by a wide margin. While the Nasdaq is up 429.91 points or 3.4 percent at 13,039.07, the S&P 500 is up 64.53 points or 1.7 percent at 3,885.88 and the Dow is up 202.14 points or 0.6 percent at 32,004.58.
The rebound by the Nasdaq comes as technology stocks are seeing significant strength amid a pullback by treasury yields.
The yield on the benchmark ten-year note has shown a notable move to the downside after ending the previous session at its highest closing level in over a year.
Tech stocks pulled back sharply in reaction to the jump in bond yields seen on Monday, with the Nasdaq tumbling to a nearly three-month closing low.
The subsequent pullback shown by yields this morning has inspired traders to pick up tech stocks at reduced levels despite lingering concerns about inflation and the outlook for interest rates.
Electric car maker Tesla (TSLA) is showing a significant rebound after closing lower for five straight sessions, while tech giants Facebook (FB), Apple (AAPL) and Amazon (AMZN) are also posting strong gains.
Semiconductor stocks are turning in some of the market’s best performances in morning trading, with the Philadelphia Semiconductor Index spiking by 5.2 percent after ending the previous session at its lowest closing level in over two months.
Software, computer hardware and networking stocks are also seeing considerable strength, contributing to the rally by the tech-heavy Nasdaq.
Outside of the tech sector, gold stocks are also seeing significant strength on the day, resulting in a 2.8 percent jump by the NYSE Arca Gold Bugs Index.
The rally by gold stocks comes amid a sharp increase by the price of the precious metal, with gold for April delivery soaring $38.70 to $1,716.70 an ounce.
Retail, healthcare and biotechnology stocks are also seeing notable strength on the day, while energy, banking and airline stocks are bucking the uptrend.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1 percent, while China’s Shanghai Composite Index tumbled by 1.8 percent.
The major European markets have also turned mixed over the course of the session. While the U.K.’s FTSE 100 Index has edged down by 0.2 percent, the French CAC 40 Index is up by 0.2 percent and the German DAX Index is up by 0.4 percent.
In the bond market, treasuries are regaining ground following the steep drop seen over the past few weeks. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.7 basis points at 1.549 percent.
Business News
Nasdaq Soars As Tech Stocks Rebound Amid Pullback By Bond Yields
2021-03-09 14:35:02
