Tech, Financials Lead Wall Street 1 Percent Higher


Michael Purves, chief global strategist at Weeden & Co in New York, said Monday’s move showed “big, fast, money saying, ‘Wait a second, buy this dip.'”

“You test the key support level and go back and test it again, which is what we did on Friday,” he said.

The S. & P. 500 Index

Position of the S. & P. 500 index at 1-minute intervals on Monday.

Previous close


But while last week’s panic selling appeared to be done, strategists were not calling an end to the pullback. The S&P still closed 7.6 percent below its Jan. 26 record closing high. It confirmed a correction on Thursday, when it dropped 10 percent below the record.

3-Month Treasury Bills

High rate at weekly auction.

Jeff Schulze, investment strategist, at Clearbridge Investments, in New York is expecting more volatility “as the tug-of-war from short-term negative price momentum is put up against the long-term fundamentals.”

He said “the long-term fundamentals will win out, but I think volatility will also be part of that equation.”

All the S&P 500’s major 11 sectors rose, though bond-proxy sectors real estate, utilities and telecommunications services underperformed as investors monitored rising interest rates after U.S. 10-year Treasury yields hit a new four-year high of 2.902 earlier in the day.

The S&P materials sector was the biggest percentage gainer with a 2.1 percent rise followed by a 1.8 percent gain in information technology

Stocks were helped a little by Trump’s budget proposal for fiscal 2019, which includes $200 billion for infrastructure spending, more than $23 billion for border security and immigration enforcement, as well as $716 billion for military programs, including the U.S. nuclear arsenal.

The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, ended down 3.45 points at 25.61, its lowest close since Feb. 2.

The market took fright after strong wage-growth data on Feb. 2 raised the specter of rising inflation and fears of accelerated interest rate hikes, which ignited a rally in bond yields and a sell-off in stocks.

The S&P’s biggest boosts from single stocks came from Apple Inc, which rose 4 percent, and, which ended up 3.5 percent.

Advancing issues outnumbered declining ones on the NYSE by a 2.80-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and eight new lows; the Nasdaq Composite recorded 24 new highs and 43 new lows.

About 8.13 billion shares changed hands on U.S. exchanges compared with the 8.5 billion average for the last 20 trading days.

(Additional reporting by April Joyner, Megan Davies, Herbert Lash, Saqib Iqbal Ahmed and Caroline Valetkevitch in New York, Sruthi Shankar in Bengaluru, Sujata Rao in London; Editing by Savio D’Souza and Nick Zieminski)

Continue reading the main story


Please enter your comment!
Please enter your name here