U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia.
The Nasdaq 100 Index climbed for the third time in four sessions, boosted by gains in Amazon.com Inc., Alphabet Inc. and Apple Inc. The S&P 500 fluctuated between gains and losses. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.
Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.
“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”
Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.
Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fluctuated after Monday’s drop below the reference price used in its April direct listing.
Here are some key events this week:
- The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflation
- EIA crude oil inventory report Wednesday
- St. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events Wednesday
- IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue Thursday
- Australia unemployment rate Thursday
- Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22
These are some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 11:50 a.m. New York time
- The Nasdaq 100 rose 0.3%
- The Dow Jones Industrial Average fell 0.2%
- The Stoxx Europe 600 rose 0.2%
- The MSCI World index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.4% to $1.2206
- The British pound rose 0.4% to $1.4187
- The Japanese yen rose 0.2% to 108.99 per dollar
Bonds
- The yield on 10-year Treasuries was little changed at 1.65%
- Germany’s 10-year yield advanced one basis point to -0.10%
- Britain’s 10-year yield was little changed at 0.87%
Commodities
- West Texas Intermediate crude fell 0.6% to $66 a barrel
- Gold futures were little changed
— With assistance by Andreea Papuc