Nasdaq recovers as tech stocks gain ground By Reuters

By Shashank Nayar and Medha Singh

(Reuters) – US stocks rose on Tuesday, and the Nasdaq rose more than 3% to recoup its losses in the previous session, as US bond yields fell and investors rallied battered tech stocks.

Among the largest increases on the Nasdaq and Nasdaq are Tesla (NASDAQ 🙂 Inc, Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ :), Facebook Inc (NASDAQ 🙂 and Microsoft Corp (NASDAQ 🙂 jumped between 2.4% and 7.2% after heavy losses in recent weeks, as a surge in yields raised concerns about its high valuations.

Signs that a $ 1.9 trillion coronavirus relief package was nearing final approval prompted a surge in yields on Monday, pushing the tech-heavy Nasdaq to finish more than 10% below. from its February 12 closing high that confirmed a correction.

Yields on 10-year US Treasuries fell to 1.54% after hovering near 13-month highs of 1.613% in the previous session. Longer-term returns have risen over the past month as investors value a faster-than-expected economic rebound and higher inflation.

Higher returns may weigh even more on highly valued growth and technology stocks, as they threaten to erode the value of your cash flows over the longer term.

“Tech stocks are overdue for some kind of rebound after their slide so far, and most investors have a positive outlook (on them) over the medium and long term,” said Michael Sheldon, chief investment officer. from RDM Financial in Westport. Connecticut.

“The potential headwind for the market is if interest rates go higher from this point during the short period … as they have risen too fast in too little time.”

At 9:59 a.m. ET, it was up 168.01 points, or 0.53%, to 31,970.45, the S&P 500 gained 57.06 points, or 1.49%, to 3,878.41 and gained 399.55 points, or 3.17%, to 13,008.71.

Rising yields have accelerated the turnover of “stay-at-home” winners to stocks poised to benefit from an economic reopening, helping the top-tier Dow hit an intraday record Monday.

The global economic outlook has improved as vaccine launches accelerate and the United States launches a massive new stimulus package, the Organization for Economic Cooperation and Development said, raising its growth forecasts for 2021.

The US House of Representatives could pass the aid bill on Tuesday, with a vote allowing the Democratic president to sign the legislation into law later this week.

The banking index fell 2% after rising to a new 14-year high. The financial and energy sectors were in the red.

GameStop (NYSE 🙂 was up 18%, based on Monday’s rise of more than 40% in the video retailer’s e-commerce strategy and speculation that small investors will pour stimulus controls into markets.

Forward issues outnumbered those that declined 2-to-1 on the NYSE and 3.2-to-1 on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and no new lows, while the Nasdaq posted 131 new highs and eight new lows.