Nasdaq outperforms other major U.S. indexes as Apple stock rises

Bansari Mayur Kamdar and Shristi Achar A

Reuters – Apple shares rose and U.S. shares rose on Monday as focus shifted to this week’s testimony and jobs data from Fed Chairman Jerome Powell, providing new clues about the trajectory of interest rates. The easing of yields on government bonds sent the tech-rich Nasdaq index higher. .

The iPhone maker’s stock rose 3.2% as Goldman Sachs (NYSE:) opened the report with a ‘buy’ rating.

Other rate-sensitive megacap stocks including: Microsoft (NASDAQ:) and Meta Platforms were also among the top boosts to NASDAQ as US yields remained flat. [US/]

Last week, the 10-year yield hit a four-month high of 4.091%, while the 2-year yield reached 4.944%.

Higher bond yields tend to weigh on stock valuations, especially growth and technology stocks, because higher interest rates reduce the value of future cash flows.

Graphic: Correlation between S&P 500 and 2-year Treasury yield https://fingfx.thomsonreuters.com/gfx/mkt/dwpkdzydovm/bondsequities.PNG

Three major U.S. stock indices rallied on Friday as yields pulled back from their peak after comments from policymakers at the Federal Reserve (Fed) eased tensions over aggressive rate hikes, Recorded weekly gains.

Powell will testify before Congress on Tuesday and Wednesday, and investors will be watching for clues to the policy outlook.

“If the past is the prologue, he will continue to stick to the hawkish narrative as he must maintain long-term inflation expectations,” said Thomas Hayes, chairman of Great Hill Capital. rice field.

Traders expect at least three more 25 basis point rate hikes this year, with rates peaking at 5.44% by September from 4.67% currently.

U.S. stocks have been very volatile in recent weeks after a strong performance earlier in the year. increase.

At 12:00 pm ET, the was up 131.49 points (0.39%) to 33,522.46, the S&P 500 was up 27.32 points (0.68%) to 4,072.96, and the was up 116.37 points (1.00%) to 11,805.11.

Nine of the S&P 500’s 11 major sectors rose in early trading. But mining and oil company commodities stocks fell 1.0% and 0.2%, respectively, as China, the largest consumer of crude oil and metals, set a lower-than-expected economic growth target of about 5% this year. .

US-listed shares of Chinese companies Baidu (NASDAQ:) and PDD Holdings each fell more than 1%.

Shares of crypto-related companies fell after Silvergate Capital (NYSE:) Corp pulled the plug on its crypto payment network.The California-based bank dropped his 6.1%, while its peers signature bank (NASDAQ:) fell 1.0%.

New orders for U.S.-manufactured goods in January rose as data showed that while commercial airline bookings fell, orders for machinery and a range of other products rose, suggesting manufacturing is regaining its footing. fell short of expectations.

On the NYSE, gainers outnumber losers by a ratio of 1.00 to 1. Losers outnumbered gainers on the Nasdaq by 1.28 to 1.

The S&P index posted 19 new highs and one new low in 52 weeks, while the Nasdaq posted 69 new highs and 45 new lows.