S&P 500, Nasdaq Rises As Megacap Shares Bounce; Boeing weighs on Dow – fr

S&P 500, Nasdaq Rises As Megacap Shares Bounce; Boeing weighs on Dow – fr

The front facade of the New York Stock Exchange (NYSE) is seen in New York, United States, May 4, 2021. REUTERS / Brendan McDermid

The S&P 500 and Nasdaq rose on Wednesday as mega-cap stocks rebounded from a massive sell-off in the previous session and private jobs rose in April, but a drop in Boeing shares weighed on the Dow.

Tech-related companies including Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O), Facebook Inc (FB.O) and Alphabet Inc (GOOGL.O) have increased by 0.2% and 1.3%.

Six of the top 11 sectors of the S&P 500 rose early in the session, with energy stocks (.SPNY) surging 2.8% leading the way. The tech sector of the S&P 500 (.SPLRCT) advanced 0.5%.

Defensive utilities (.SPLRCU) and real estate (.SPLRCR) fell more than 1% each, leading to sector declines.

“Reopening optimism is back driving the markets today, with investors realizing that yesterday’s sell-off was probably a bit of a stretch,” Fiona Cincotta, senior financial markets analyst at City Index said at London.

The S&P 500 Value Index (.IVX) has risen 15.1% so far this year, while its growth counterpart (.IGX) is up 7.1%.

Strong economic data and earnings pushed the S&P 500 (.SPX) and Nasdaq (.IXIC) indices to record highs last week, but markets faltered amid concerns about rising inflation and potentially higher US interest rates.

U.S. Treasury Secretary Janet Yellen said on Tuesday she saw no inflation issues looming, downplaying earlier comments that rate hikes may be needed to prevent the economy from overheating as the plans President Joe Biden’s spending spurs growth. Read more

“We think in the market that a rate hike will come, but it’s not quite on the radar yet. Powell has worked very hard to get this message across, ”said Cincotta of City Index.

ADP’s national employment report showed that the U.S. private sector wage bill rose in April as companies rushed to increase production amid surging demand, fueled by government aid. massive and increased COVID-19 vaccinations. Read more

A fuller read in the form of the Labor Department’s non-farm payroll data is expected on Friday.

Boeing Co (BA.N) fell 2.3%, lowering the Dow Jones Industrial Average (.DJI), after U.S. aviation safety officials asked it to provide new analysis and documentation showing that 737 MAX subsystems would not be affected by electrical grounding issues. Read more

At 10:33 a.m. ET, the Dow Jones was down 49.24 points, or 0.14%, to 34,083.79, the S&P 500 (.SPX) was up 5.22 points, or 0.13% , at 4,169.88 and the Nasdaq Composite (.IXIC) was up 34.08 points, or 0.25%, to 13,667.58.

T-Mobile US Inc (TMUS.O) gained 3.2% as it increased its forecast for net postpaid subscriber additions for the full year. Read more

Uber Technologies Inc (UBER.N) is expected to report earnings after market close on Wednesday.

The declining issues outnumbered the proponents for a 1.11-to-1 ratio on the NYSE and a 1.32-to-1 ratio on the Nasdaq.

The S&P Index recorded 75 new 52-week highs and no new lows, while the Nasdaq recorded 73 new highs and 31 new lows.

Our Standards: Thomson Reuters Trust Principles.


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