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Bansari Mayur Kamdar, Shreyashi Sanyal and Sinéad Carew
(Reuters) – Nasdaq and Thursday’s falling investors made gains on technology stocks ahead of the fourth-quarter earnings season and a three-session rally.
Among S&P’s 11 largest sectors, technology was the biggest drag on the index, healthcare and then consumer discretion.
The technology-laden Nasdaq rose 1.7% in the last three sessions, after falling 5.7% in the previous four trading days as investors saw the direction of interest rates. This year’s Federal Reserve interest rate hikes are a concern for growth sectors such as technology and consumer discretion.
Even as the U.S. Treasury’s 10-year yields fell on Thursday, investors moved forward and took gains on shares of Nasdaq, according to Sameer Samana, the global market’s chief strategist. Wells Fargo (NYSE 🙂 St. Louis Investment Institute.
“We’ve had a nice rebound on the Nasdaq in recent days, so there may be a bit of nervousness about Fed rates and taking profits, especially before the profit,” the strategist said.
By 2:17 p.m. (1917 GMT), up 33.31 points, or 0.09%, to 36,323.63, the S&P 500 32.33 points, or 0.68%, to 4,694.02 points, and 221.89 points, 6%, 1.6, 1.89 points, 6.1%.
Companies will announce results in the last quarter of 2021 in the coming weeks with JPMorgan Chase (NYSE 🙂 banks. Citigroup (NYSE 🙂 and Wells Fargo will release the ball on Friday, and major technology companies will announce it next week.
Year-over-year earnings growth for S&P 500 companies was expected to be lower in the fourth quarter compared to the first three quarters, but still strong at 22.4%, according to Refinitiv IBES data.
As the focus was on equity-focused stocks on Thursday, the S&P 500 bank index rose 0.6% to a record high during the session.
Retail investors have also increased their exposure to bank stocks ahead of earnings forecasts, according to a weekly report on retail flows by Vanda (NASDAQ 🙂 Research.
Delta Air Lines (NYSE 🙂 gained 3.4% after surpassing fourth-quarter earnings estimates. Its CEO also announced a rapid recovery from turbulence caused by the Omicron coronavirus variant, which helped raise the S&P 1500 Airlines index by 3.4%.
In addition, the data showed that the producer price index (PPI) rose by 0.2% last month after a 0.8% increase in November, and in the 12 months to December, the PPI rose by 9.7% compared to the forecast of 9.8% of economists surveyed by Reuters.
PPI figures Wall Street indices hit a 40-year high to cheer up consumer inflation figures and come largely from meeting market expectations.
Fed Chairman Lael Brainard said the U.S. central bank would be in a position to begin raising interest rates this year as soon as it completes “expected March” bond purchases.
Wells Fargo Goldman Sachs (NYSE :), JPMorgan and Deutsche Bank (DE 🙂 This year the Fed expects interest rates to rise fourfold.
Progress issues outperformed the NYSE with a 1.25 and 1 ratio; On the Nasdaq, the 1.51 and 1 ratios favored declines.
The S&P 500 posted a new high of 44 52 weeks and no new lows; The Nasdaq Composite recorded 69 new highs and 300 new lows.
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