(Bloomberg) — A rally in big tech spurred a rebound in stocks, outweighing concerns over higher Treasury yields just a few days ahead of a speech by Federal Reserve Chair Jerome Powell.
The S&P 500 halted a four-day drop while the Nasdaq 100 rose about 1.5%, with Tesla Inc. up the most since March. Nvidia Corp., which helped ignite the artificial-intelligence frenzy that has driven this year’s equity surge, jumped over 8%. The chipmaker’s results are due Wednesday, and revenue is seen rising 65% from a year earlier, according to data compiled by Bloomberg.
“This is a big week for tech stocks, and optimism is brewing that Nvidia will deliver some good results,” said Ed Moya, senior market analyst for the Americas at Oanda. “Will Nvidia’s earnings reignite the AI trade and provide much needed relief to tech stocks?”
In late hours, SoftBank Group Corp. semiconductor unit Arm filed for what is set to be this year’s largest US initial public offering. Zoom Video Communications Inc. rallied on a bullish forecast. Charles Schwab Corp. is planning to cut at least $500 million in annual staff, professional services and real estate costs in the latest step by the brokerage to respond to investor pressure.
Bonds resumed their selloff as signs of economic strength bolstered bets on still elevated rates. The yield on 10-year inflation-protected Treasuries pushed over 2% for the first time since 2009. Not long after, the yield on 10-year notes without that protection hit a level last seen in late 2007.
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Source:
ENB
Sandstone Group
