Technology shares led U.S. stocks higher, regaining favor on the last day of a quarter where they trailed the rest of the major market sectors, with President Joe Biden set to unveil his next stimulus plan.
Apple Inc., Microsoft Corp. and Tesla Inc. pushed the tech-heavy Nasdaq 100 up 1.5%, while the Dow Jones Industrial finished lower with investors favoring growth over value shares again. The benchmark S&P 500 set an intraday high, retreating from a record closing level in the last moments of trading. Oil fell after an OPEC+ panel meeting ended without an oil policy recommendation. The dollar weakened, but still posted its best quarter in a year. The Bloomberg Commodity Index and developing-nation currencies climbed.
“The message is pretty clear that he intends to go big,” said Shawn Snyder, head of investment strategy at Citi Personal Wealth Management. “It’s really really huge fiscal tail winds.”
Data for March showed U.S. private employers added the most jobs in six months, adding to evidence that the vaccine drive and business reopenings are encouraging hiring.
Investors, rattled this week by the meltdown at Bill Hwang’s Archegos Capital Management, are turning their attention to growth and inflation as volatility spurred by the forced sales subsides. While Europe’s struggle with inoculations and the resurgence of the coronavirus have tempered growth expectations, the U.S. vaccine rollout is surpassing targets.
“We continue to be in this rotational kind of market and in particular some of what had been — to use a supermarket term — the hot pockets of speculative excess,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “But it obviously has not taken the market down with it more broadly, nor did the spectacle of Archegos do that either, so there’s clearly still resilience in the market.”
The fallout from the Archegos liquidation continued to play out. Discovery Inc.’s Class B shares surged as much as 115% before paring some gains and triggering several volatility halts. The gain far outpaced the advance in Class A shares, which trade with significantly more daily volume.
Ten-year Treasury yields rose for the fourth time in five days, trading near a 14-month high. Gold steadied after a two-day slump. West Texas Intermediate crude slipped after a gathering among producers ended without any recommendations on output, according to delegates.
These are some of the main moves in financial markets:
The S&P 500 Index increased 0.4% to 3,972.90 as of 4:06 p.m. EDT.
The Dow Jones industrial average decreased 0.3% to 32,981.55.
The Nasdaq Composite Index gained 1.5% to 13,246.87, the highest in more than a week on the largest climb in almost three weeks.
The Nasdaq 100 Index gained 1.5% to 13,091.44, the highest in almost two weeks.
The Stoxx Europe 600 Index fell 0.2% to 429.60, the largest fall in more than a week.
The Bloomberg Dollar Spot Index decreased 0.2% to 1,152.21.
The euro rose 0.1% to $1.1726.
The British pound increased 0.3% to $1.3782.
The Japanese yen depreciated 0.3% to 110.74 per dollar, hitting the weakest in about a year with its sixth straight decline.
The yield on two-year Treasurys gained one basis point to 0.16%, the highest in three weeks on the biggest rise in more than a week.
The yield on 10-year Treasurys gained three basis points to 1.74%, the highest in about 14 months.
The yield on 30-year Treasurys jumped four basis points to 2.41%.
Britain’s 10-year yield increased two basis points to 0.845%, the highest in more than a week.
Germany’s 10-year yield fell one basis point to -0.29%.
West Texas Intermediate crude decreased 2% to $59.36 a barrel.
Gold strengthened 1.3% to $1,707.49 an ounce, the biggest increase in three weeks.
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With assistance from Bloomberg’s David Wilson and Srinivasan Sivabalan.