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© Reuters. PHOTO PHOTO: A Wall Street sign is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, USA on December 28, 2016. REUTERS / Andrew Kelly / Photo File
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By Ambar Warrick and Noel Randewich
(Reuters) – It ended lower and the Nasdaq entered negative territory on Monday, after both set their first records after announcing the second term of Federal Reserve Chairman Jerome Powell.
It ended a little higher.
Treasury yields were lower than the shares of tech stocks, with holdouts including Microsoft (NASDAQ 🙂 and Apple (NASDAQ :), which many investors consider relatively safe, yielding gains at the end of the session.
Apple finished 0.3%, the highest level of closure ever, after rising more than 3% earlier in the day. JPMorgan (NYSE 🙂 noted possible improvements in the supply of the iPhone 13 in the coming months.
Microsoft fell by almost 1%, having previously risen by almost 2%.
“The market is nervous. We know we have Powell, but that doesn’t help with the inflation issue,” said Dennis Dick, a trader at Bright Trading LLC. “Under the hood, the growth technology hit all day, and then all the technology, at the end.”
Powell’s appointment was welcomed by many investors with the hope of no major change in the Fed, as the economy has been driven by a recovery from the pandemic. The central bank will announce a return to pre-pandemic policy by the end of 2022.
Fed Governor Lael Brainard, who was the other top candidate for office, will be vice president, the White House said.
“Markets like predictability … While Brainard might have been a good option, markets wouldn’t know what to expect from him, even if the general consensus meant lower rates would last a long time,” said Randy Frederick, managing director of trade. and at derivatives Charles Schwab (NYSE 🙂 Austin, Texas.
The S&P 500 bank index rose 2%, following the rise in Treasury yields, as investors were priced to tighten policy in the first half of 2022. Wells Fargo (NYSE 🙂 & Co rose more than 3% and was among the top banks on Wall Street.
Futures contracts linked to the Fed’s policy rate indicated that money markets now expect the U.S. central bank to raise interest rates by 25 basis points by next June, compared to a previous July estimate.
The Dow Jones Industrial Average rose 0.05% to 35,619.25 points, while the S&P 500 lost 0.32% to 4,682.94.
It fell 1.26% to 15,854.76.
The S&P 500 index rose 0.6%, significantly exceeding the 1% drop in the S&P 500 growth index.
Extended trade, Zoom Video Communications (NASDAQ 🙂 The video conferencing company was up 6% after the quarterly earnings exceeded expectations.
Investors were expecting a lot of economic data this week, including readings on IHS business activity, personal consumption spending and minutes of the Fed’s last meeting.
In Monday’s session, Amazon (NASDAQ 🙂 fell 2.8% and Alphabet (NASDAQ 🙂 fell 1.8%, both of which weighed heavily on the Nasdaq.
Tesla (NASDAQ 🙂 Inc. gained 1.7% after tweeting director Elon Musk that the Model S Plaid will “most likely” arrive in China in March. The shares have almost recovered in early months after Musk began questioning whether he should sell some of his shares to Twitter (NYSE 🙂 users after questioning about the electric car manufacturer.
Activision Blizzard (NASDAQ 🙂 was down 0.3% when the media thought it would leave if Bobby Kotick, CEO of video game publishing, could not quickly address concerns about the company’s culture.
The S&P 500 will gain about 25% in 2021, while the Nasdaq will gain 23%.
Declining issues outperformed the NYSE with a ratio of 1.28 to 1; On the Nasdaq, the ratios of 1.76 and 1 favored declines.
The S&P 500 has set a new 52-week high and 11 new lows; The Nasdaq Composite recorded 138 new highs and 507 new lows.
The volume of U.S. exchanges was $ 11.6 trillion per share, up from an average of 11.1 billion in a full session over the last 20 trading days.
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