Weekly gains as Wall Street rallies, declines in Treasury yields

  • Indexes are set for weekly gains
  • S&P 500 breaks 50-day moving average
  • Indexes Up: Dow 0.85%, S&P 1.29%, Nasdaq 1.66%

NEW YORK, March 3 (Reuters) – U.S. Treasury yields eased and economic data helped investors look beyond the possibility of the Federal Reserve maintaining its tightening policy. in place for longer than expected.

All three U.S. stock indexes were positive, led by tech-heavy Nasdaq, which was given a solid boost by market-leading, interest-rate-sensitive megacaps. US Treasury yields were cut after comments from central bank officials eased fears about inflation and interest rates.

For the week, indexes appear to be on track for peak gains, with the S&P snapping three straight weeks of losses and the Dow enjoying its first weekly gain since late January.

This week the S&P 500 broke through its 50- and 200-day moving averages, two closely watched technical levels.

“You have an oversold market that has traded to key support levels and it’s above the resistance level of the 50-day moving average,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. And many doubt it, but they don’t want to be left behind.”

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Economic data released on Friday showed steady demand for services, with purchasing managers’ indices (PMIs) from the Institute for Supply Management and S&P Global indicating that activity in the sector continued to expand even as input prices cooled.

“There’s no indication that we’re going off a cliff,” Pavlik added. “The employment market remains strong and this morning’s data points to a soft landing.”

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At 1:56 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 279.29 points, or 0.85%, at 33,282.86, while the S&P 500 (.SPX) was up 51.18 points, or 1.29%, at 4,032.53 and the Composite Composite was up 51.53 points, or 0.53%, at 33,282.86. ) added 189.80 points or 1.66% to 11,652.78.

Among the S&P 500’s 11 major sectors, all but Consumer Staples (.SPLRCS) were in positive territory, with Communications Services (.SPLRCL) and Consumer Discretionary (.SPLRCD) enjoying the biggest percentage gains.

Fourth-quarter earnings season is in its final stages, with all but seven companies in the S&P 500 having reported. Results for the quarter beat consensus estimates by 68%, according to Refinitiv.

Overall, however, analysts believe S&P 500 earnings will have fallen 3.2% in the fourth quarter from a year earlier, and expect negative annual numbers in the first two quarters of 2023. A three-quarter revenue slowdown in the final months of 2022, a Refinitiv.

Apple Inc ( AAPL.O ) rose 2.9% after Morgan Stanley said it could gain more than 20% in hardware subscriptions this year.

Broadcom Inc ( AVGO.O ) advanced 5.5% after the chipmaker forecast second-quarter earnings that beat analysts’ estimates as increased investments in AI fueled demand for chips.

Among the losers, Costco Wholesale Corp ( COST.O ) fell 2.8% as its earnings missed, as high inflation dampened consumer demand.

Chipmaker Marvell Technology Inc ( MRVL.O ) fell 6.3% on a quarterly profit miss and a disappointing revenue forecast.

Advancing issues outnumber declining issues on the NYSE by a 4.63-to-1 ratio; On the Nasdaq, a 2.33-to-1 ratio favored the advancers.

S&P 500 hits 21 new 52-week highs and two new lows; The Nasdaq Composite posted 73 new highs and 49 new lows.

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Reporting by Stephen Culp; Additional reporting by Shruti Shankar in Bangalore; Editing by Cynthia Osterman

Our Standards: Thomson Reuters Trust Principles.

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