NEW YORK (Reuters) – The S&P 500 and Dow Jones Industrial Average hit all-time highs on Tuesday as cyclical sectors gained the prospect of more fiscal aid to lift the U.S. economy from a coronavirus-driven fall.
The Nasdaq, however, fell as technology stocks fell.
The sectors most likely to benefit from a reopening economy, including energy and finance, reaped the greatest benefits. President Joe Biden has introduced a $ 1.9 trillion pandemic relief bill and is pressuring Congress to pass it in the coming weeks to get $ 1,400 of stimulus control on Americans and strengthen the unemployment payments.
The S&P 500 banking index jumped 3.2% as U.S. 10-year Treasury yields peaked in February 2020.
“Reflation trading continues to drive equity markets across all industries and multi-capitalizations … and this rally could continue in the short term,” said Tony Bedikian, global market leader at Boston Citizens Bank .
By contrast, utilities and real estate recorded the highest percentage of losses among the S&P 500 sectors, and technology stocks also fell. Utilities and real estate, due to their steady earnings and high dividend yields, are often considered bond representatives and tend to move in conjunction with Treasuries.
According to some market analysts, the technology sector includes many stocks with multiple high profits, which may also be under pressure with increased yields.
The S&P 500 withdrew from session highs as yields rose on Tuesday, reflecting investors’ concerns about the daily rise in bond yields, said Robert Phipps, director of Per Stirling Capital Management in Austin. , Texas. The stock would likely tolerate a gradual rise in rates, but a higher sprint could create turmoil, in his view.
“While interest rates remain very low, the stock market will be very, very sensitive to change,” he said.
The Dow Jones Industrial Average rose 97.56 points, or 0.31%, to 31,555.96, the S&P 500 gained 3.79 points, or 0.10%, to 3,938.62, and the Nasdaq Composite fall 25.65 points, or 0.18%, to 14,069.83.
A sharp drop in new coronavirus infections, progress in vaccinations and a stronger-than-expected fourth-quarter earnings season have bolstered hopes for a quick business recovery this year.
This week’s earnings reports from Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., Marriott International Inc., Norwegian Cruise Lines and TripAdvisor Inc. will be closely monitored for signs of a recovery in global travel demand.
Shares of cryptocurrencies and blockchain-related companies, including Silvergate Capital Corp., Riot Blockchain and Marathon Patent Group, jumped between 8% and 21%, as Bitcoin briefly topped $ 50,000.
Investors will also focus this week on the minutes of the January meeting of the Federal Reserve, where he reaffirmed his commitment to maintaining a balanced political stance.
Advanced issues outperformed NYSE negatives by a ratio of 1.04 to 1; on the Nasdaq, a ratio of 1.17 to 1 favored the forwards.
The S&P 500 recorded 75 new highs of 52 weeks and no new lows; the Nasdaq Composite recorded 363 new highs and nine new lows.
April Joyner Reports; Additional reports of Devik Jain and Shreyashi Sanyal in Bengaluru; Edited by Saumyadeb Chakrabarty and Cynthia Osterman