Wall Street moves higher on tech, financials boost
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(Reuters) – Wall Street’s main indexes rose on Tuesday, supported by gains in technology and financial stocks, looking to rebound from declines in the previous two sessions driven by global growth worries.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 22, 2019. REUTERS/Brendan McDermid
The financial sector rose over 1 percent in early trading and was set to snap a five-day losing streak, as yields stabilized.
The benchmark 10-year Treasury yields rose off 15-month lows and a closely watched part of the yield curve was less inverted on Tuesday. [US/]
An inversion of the U.S. Treasury yield curve on Friday added to the global economic slowdown worries, triggering a selloff in stocks over the past two sessions.
“The fact that markets were beaten up so much on Friday, people were looking at the yield curve and the stock market selling off and thought things were getting weaker, but that panic phase may have passed,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
“The growth worries were probably a little overdone but that is certainly going to be an ongoing concern.”
The technology also gained over 1 percent, propped up by a nearly 1 percent gain in Apple Inc, a day after the iPhone maker unveiled its video streaming service, a credit card and an online gaming arcade.
At 9:43 a.m. ET, the Dow Jones Industrial Average was up 233.40 points, or 0.91 percent, at 25,750.23. The S&P 500 was up 25.63 points, or 0.92 percent, at 2,823.99 and the Nasdaq Composite was up 73.08 points, or 0.96 percent, at 7,710.62.
Investors also awaited progress on U.S.-China trade talks, with top U.S. officials traveling to Beijing for a new round of high-level negotiations, which are scheduled to start on Thursday.
Boeing Co climbed 0.60 percent, extending Monday’s gain after the planemaker said it would provide airlines that have bought its 737 MAX with free software upgrades.
Nvidia Corp rose over 4.02 percent after brokerage Piper Jaffray initiated coverage on the chip designer with an “overweight” rating. The Philadelphia Semiconductor Index added 1.79 percent.
Oil stocks climbed 1.96 percent, tracking a rise in crude prices as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown. [O/R]
Carnival Corp fell 6.2 percent, the most on the S&P, after the world’s largest cruise operator cut its annual profit forecast.
Advancing issues outnumbered decliners by a 5.89-to-1 ratio on the NYSE and by a 3.81-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low, while the Nasdaq recorded 18 new highs and seven new lows.
Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila