The tech-heavy Nasdaq edged the main Wall Street indexes on Monday, boosted by shares of Amazon and Tesla, while signs of a cooling labor market supported bets to slow interest rate hikes by the Federal Reserve.
Amazon. Com Inc rose 3.4% after Jefferies said it was easing cost pressures in the second half of the year for the e-commerce giant.
Tesla Inc climbed 7.5% after the electric-vehicle maker indicated longer waiting times for some versions of the Model Y. ChinaThe recent price cut may indicate an increase in demand.
Other rate-sensitive growth stocks such as apple Inc and Alphabet Inc rose about 1% as US Treasury yields declined.
The gains pushed the technology to the top of the major S&P 500 sector index list. The S&P 500 Growth Index was up 3.6%, which was better than the 0.7% increase among its value peers.
The benchmarks S&P 500 and Nasdaq closed higher on Friday after a less accommodative stance from the Fed, as well as expectations of a softer landing for the US economy after a slowdown in wage growth and a decline in US services activity in December.
“The number of jobs created is slowing and wages are starting to cool. Both of these are key to getting inflation under control, not necessarily regardless of whether the US economy is in recession,” Art Hogan, Chief Markets said the strategist. B Riley Financial.
The much-anticipated US Labor Department inflation report on Thursday is expected to show some year-on-year decline in consumer prices in December.
Money market bets show 75% odds of a 25-basis point hike at the Fed’s February policy meeting, with the terminal rate expected to drop below 5% by June.
other economic data such as weekly useless The claims and a consumer sentiment report from the University of Michigan will also be in focus this week, as big US banks kick off quarterly earnings season on Friday.
Several Fed officials, including Chair Jerome Powell, are scheduled to speak this week, with investors parsing their remarks for more clues on the rate-hike trajectory.
US-listed shares of Alibaba Group Holding Ltd climbed 2.7% on news that Ant Group founder Jack Ma will give up control of the Chinese fintech giant in an overhaul.
At 9:58 a.m., the Dow Jones Industrial Average was up 132.40 points, or 0.39%, at 33,763.01, the S&P 500 was up 33.17 points, or 0.85%, at 3,928.25 and the Nasdaq Composite was up 160.39 points, or 1.52. %, at 10,729.69.
Macy’s Inc and Lululemon Athletica Inc dropped 8.7% and 10.3%, respectively, after missing holiday-quarter forecasts from both retailers.
Other retailers such as Kohl’s Corp and Nordstrom Inc also declined by 4.3% and 2.9%, respectively.
Issue decliners move to a 3.68-to-1 ratio on the NYSE and a 2.15-to-1 ratio on the Nasdaq.
The S&P index posted 10 new 52-week highs and two new lows, while the Nasdaq posted 95 new highs and 14 new lows.
The text of this story is published from a wire agency feed without any modification.
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