Stocks turned higher in afternoon trading on Wall Street on Tuesday after a directionless morning as investors continue to struggle to predict how well the economy will weather the current bout of inflation as well as the Federal Reserve’s medicine for healing it, higher interest rates.
The S&P 500 closed 0.8 per cent higher, the Dow Jones added 1.1 per cent and the tech-heavy Nasdaq rose by 1.3 per cent. The ASX is set to open higher, with futures at 7.59am AEDT pointing to a rise of 18 points, or 0.3 per cent, at the open.
Wall Street wrapped up its worst week in nearly two years with more heavy losses.Credit:AP
Smaller company stocks outpaced the broader market in a potential sign that investors are optimistic about economic growth. The Russell 2000 rose 1.6 per cent.
Bond yields rose. The yield on the 10-year Treasury note rose to 1.96 per cent, its highest level since before the pandemic began. The yield, which is used to set interest rates on mortgages and many other kinds of loans, traded at 1.91 per cent late Monday
Banks, which benefit from higher interest rates and rising bond yields, made solid gains. Bank of America rose 1.8 per cent. Raw materials companies, including steelmakers and paper producers, also gained ground.
Technology companies rose broadly and helped lift the broader market. Apple rose 1.9 per cent.
Chipmaker Nvidia rose 1.5 per cent after shaking off an early loss following its announcement that it terminated its plan to buy chip designer Arm from Softbank.
Oil prices fell 2.5 per cent and weighed down energy stocks. Chevron fell 1.8 per cent.
Peloton jumped 25.3 per cent after announcing a corporate shake-up that included the resignation of its co-founder as CEO and big job cuts.
ASX set to open higher on the back of late Wall Street surge
Source: Philippines Alive
