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* The increase in bank shares is cool as bond yields fall
* Technical stocks gain ground after recent weakness
* GameStop builds on 40% increase on Monday
* Future term: Dow 0.35%, S&P 0.93%, Nasdaq 2.22% (add comments, details; keep prices up)
March 9 (Reuters) – Major US stock indices rose higher on Tuesday with the Nasdaq boom following strong sales in the previous session, while US yields withdrew from the bonds and investors picked up the broken technological stocks has.
Tesla Inc rose about 6%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp each jumped about 2% in early trading.
Signs that a $ 1.9 billion coronavirus relief package would end with final approval caused a rise in returns on Monday, pushing tech Nasdaq to end more than 10% below its February 12 closing point, which is a correction confirmed.
The US yield for ten-year treasury bonds fell to 1.54% after hitting close to 1313 highs of 1,613% in the previous session. Yields that have dated longer have risen over the past month as investors accelerated faster than expected economic recovery and higher inflation.
Higher returns can weigh even heavier on technology and growth stocks with high valuations, as it threatens the value of their long-term cash flow.
“Technical stocks are lagging behind for a kind of bounce after the downturn they have had so far with most investors having a positive outlook on technology stocks in the medium to long term,” said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut, said. .
“The potential headwind for the market is if interest rates rise further from this point over the short period … because it has risen too fast in too little time.”
At 8:17 AM ET, Dow E minis rose 110 points, or 0.35%, S&P 500 E minis up 35.75 points, or 0.93%, and Nasdaq 100 E minis up 273.5 points or 2.22% increased.
The rise in yields accelerated the shift from ‘stay-at-home winners’ to shares that appeared to benefit from an economic reopening, which the Blue-chip Dow achieved on Monday.
The Organization for Economic Co-operation and Development has brightened the global economic outlook as vaccine explosions accelerate and the United States launches a huge new stimulus package, according to policy forum predictions.
Major U.S. lenders, including Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co and Goldman Sachs, slipped about 1% a day after the banking index rose to a new 14-year high.
GameStop rose 11% to $ 215.95, building on Monday’s rise of more than 40% on the video retailer’s e-commerce strategy and speculation that small investors will give stimulus checks in markets. (Reporting by Shashank Nayar and Medha Singh in Bengaluru; Edited by Maju Samuel)