Stocks Rise on Wall Street As Technology Bounces; oil peaks at $ 79
Stocks rose broadly on Wall Street on Tuesday as the tech sector reversed direction after a sell off the day before.
The S&P 500 rose 1.4% at 1:07 p.m. EST, wiping out all of Monday’s losses. The Dow Jones Industrial Average rose 412 points, or 1.2%, to 34,415 and the tech-rich Nasdaq rose 1.5%.
Tech stocks have done a lot of the heavy lifting for the broader market. Chipmaker Nvidia rose 4.2% and Microsoft 2.4%. Communications actions also made solid gains after losing ground the day before. Netflix rose 2.8%.
Bond yields gained ground. The 10-year Treasury rose to 1.52% from 1.49% on Monday night. Rising bond yields have helped banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America rose 2.7%.
Energy prices continued to rise. US oil rose 1.8% and is hovering around $ 79 a barrel. Natural gas futures jumped 8.4%. Rising energy prices have steadily pushed up gasoline prices. The average price of a gallon of gasoline in the United States is $ 3.20, up more than $ 1 from a year ago, according to AAA.
Chevron rose 1.4% and Hess rose 2.2%.
A wide range of businesses focused on consumer services has gained traction following an encouraging update on the service sector, which is the largest part of the US economy. The Institute for Supply Management said the sector continued to grow in September and at a faster pace than economists expected. Chipotle rose 2.2% and Carmax gained 3.7%.
The market has been choppy for weeks as investors attempt to assess how the economy will continue its recovery with COVID-19 and the highly contagious delta variant that is dragging down consumer spending and job growth. Inflation concerns have been the root of much of the top-down changes for tech companies and the market at large.
Rising inflation prompted companies from Nike to Sherwin-Williams to moderate their sales forecasts and warn investors that higher costs would hurt financial results. Supply chain disruptions and delays, as well as rising raw material costs, are among the main challenges businesses face as they try to continue to recover from the impact of the pandemic.
The persistent pandemic and problems in the global supply chain have prompted the International Monetary Fund to downgrade its forecast for global growth this year.
Facebook grew 2.1%. The stock fell nearly 5% on Monday as the company suffered a global outage and faced political fallout after a former employee told “60 Minutes” that the company had always chosen its own interests rather than the public good. The former employee, Frances Haugen, testified Tuesday before Congress.
European stock markets rose, while Asian markets were mostly down.