Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 4, 2022. REUTERS/Brendan McDermid
April 4 (Reuters) – Wall Street’s main indexes rose on Monday, boosted by megacap tech and growth stocks and a surge in Twitter after Elon Musk revealed a stake in the company, despite cautionary signals in the bond market and talk of more sanctions against Russia over Ukraine.
Cyclical and defensive sectors, such as financials (.SPSY) and utilities (.SPLRCU), were in negative territory.
Shares of Twitter surged 29% after Tesla Inc (TSLA.O)Chief Executive Musk revealed a 9.2% stake in the micro-blogging site, making him its largest shareholder. Shares of other social media companies also rose. read more
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Tesla shares rose 5.7% after the company on Saturday reported record electric vehicle deliveries for the first quarter. read more
“A lot of the news we are seeing today is generally positive for technology,” said Mona Mahajan, senior investment strategist at Edward Jones.
The Dow Jones Industrial Average (.DJI) rose 24.61 points, or 0.07%, to 34,842.88, the S&P 500 (.SPX) gained 25 points, or 0.55%, to 4,570.86 and the Nasdaq Composite (.IXIC) added 227.46 points, or 1.59%, to 14,488.96.
Along with Tesla, gains in Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O) and Microsoft Corp (MSFT.O) gave big boosts to the S&P 500.
However, eight of the 11 S&P 500 sectors were weaker, with utilities falling 1% and real estate down 0.6%.
The S&P 500 growth index (.IGX) gained 1.4% while the S&P 500 value index (.IVX) fell 0.3%.
“Pressures on economic growth are rising and that is not necessarily great for some of the cyclical parts of the market, so that is maybe why we are seeing this value/growth rotation today,” Mahajan said.
In the bond market, the benchmark US 10-year Treasury yield ticked up on Monday and the 2-year/10-year yield curve remained inverted. The curve inversion is seen as a harbinger for a recession in the next two years or so.
Stocks have rebounded in recent weeks after a rocky start to the year amid concerns about the Federal Reserve tightening monetary policy to fight inflation and the war in Ukraine. The S&P 500 is down about 4% so far in 2022, after being down as much as 12.5%.
Investors remained concerned about the Ukraine crisis, which has led to a spike in commodity prices that has worsened the outlook for already high inflation.
Global outrage spread on Monday at civilian killings in northern Ukraine, where a mass grave and tied bodies shot at close range were found in a town taken back from Russian troops. The deaths are likely to galvanize the United States and Europe into additional sanctions against Moscow. read more
In company news, Starbucks Corp (SBUX.O) fell 4.5% after former CEO Howard Schultz announced the suspension of the company’s stock repurchasing program. read more
US-listed shares of Chinese companies such as Alibaba jumped after China proposed revising confidentiality rules involving offshore listings. read more
Declining issues outnumbered advancers on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.65-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and three new lows; the Nasdaq Composite recorded 45 new highs and 53 new lows.
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Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru; Editing by Shounak Dasgupta and Richard Chang
Our Standards: The Thomson Reuters Trust Principles.
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