Information technology stocks led the way higher on Tuesday, following up on a historic reversal for the benchmark that began intraday Monday, as more subdued moves in Treasury yields gave way to a rally in those areas that are most susceptible to an eventual liftoff in yields.
In a Tuesday confirmation-hearing, Federal Reserve Chairman Jerome Powell painted a picture of a soft landing for the economy as the central bank moves to remove emergency stimulus measures and begin raising interest rates, even as market participants increasingly expect the Fed to move much more aggressively than previously anticipated after inflation proved hotter and much more persistent than policy makers had predicted.
-
The Nasdaq Composite Index
COMP,
+1.41%
rose 210 points, or 1.4%, to close at around 15,153 -
The S&P 500 index
SPX,
+0.92%
closed up 43 points, or 0.9%, to 4,713, aided by a 3.4% gain in the energy sector
SP500.10,
+3.41%
and a 1.2% gain in tech
SP500.45,
+1.21% . -
The Dow Jones Industrial Average
DJIA,
+0.51%
finished up 183 points, or 0.5%, to end around 36,252.
On Monday, the Nasdaq Composite’s reversal from a 2.7% intraday slide was the strongest such reversal since Feb. 28, 2020. The late-day reversal was driven by companies that had seen the worst year-to-date performance, according to Bespoke Investment Group.
The 10-year Treasury note
TMUBMUSD10Y,
yields 1.745%, down 3.4 basis points from Monday’s rate at 3 p.m. Eastern Time. Rising rates have been part of the dynamic that has weighed on stocks in recent days since the Fed’s so-called hawkish pivot.
This post was originally published on Market Watch
