Wall Street ended up sharply higher on Tuesday (8), with boost from Apple and Microsoft, while a jump in US government bond yields lifted bank shares ahead of the release of a key indicator of inflation this week.
The S&P 500 index closed up 0.84% at 4,521.54 points. The Dow Jones rose 1.06% to 35,462.78 points. The Nasdaq Composite technology index rose 1.28% to 14,194.46 points.
The S&P 500 and Nasdaq, the latter heavily weighted by technology stocks, reversed losses in the first hour of trading and later began to rise, with Amazon.com Inc up 2.2% and Apple and Microsoft both gaining more. to 1%.
The S&P 500 Banking Index rose 1.9% after the benchmark U.S. Treasury bond rate climbed to its highest level since November 2019, on mounting expectations that the Fed will begin to tighten monetary policy.
Shares of Bank of America Corp, JPMorgan Chase & Co and Wells Fargo all closed up more than 1%.
The S&P 500 energy sector index fell 2.1% as investors saw a risk that the resumption of indirect US-Iran talks could revive an international nuclear deal and allow more oil exports from the Asian and OPEC member country.
French President Emmanuel Macron’s upbeat comments about his meeting with Russian President Vladimir Putin on the Ukraine crisis also hurt oil prices and reduced anxiety on Wall Street, said Scott Ladner, chief investment officer at the management firm. Horizon Investments, based in Charlotte.
“Today’s gain (in the general market) is probably due to some of Macron’s headlines, but it’s also just recognition of the fact that the economy is in good shape, and we’ve probably exaggerated a bit to the downside,” Ladner said. .
Even with Tuesday’s rally, the S&P 500 is still down about 5% on the year, while the Nasdaq has lost about 9%.
US consumer price data for January, due for release on Thursday, is expected to show annual inflation at a four-decade peak of 7.3%. The numbers come after strong US labor market data last week, which raised concerns that the Fed will raise rates faster than previously thought.
Source: CNN Brasil
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