United States equities ascended on Thursday with Major Tech stocks leading a recovery from a downturn instigated by an unexpected rise in consumer prices on Wednesday.
The S&P 500 Index (^GSPC) surged by nearly 1%, bouncing back from a significant decline of approximately 1%. The technology-dominant Nasdaq Composite Index (^IXIC) spearheaded the upswing with an increase of roughly 1.7%. Meanwhile, the Dow Jones Industrial Average (^DJI) showed a more conservative increase, edging up by about 0.3%.
Simultaneously, the 10-year Treasury yield (^TNX) traded around 4.56%, stabilizing after a sharp surge to hit its highest level since November on Wednesday.
Pioneers of the “Glorious 7” technology stocks played a key role in leading the surge: Apple (AAPL) and Nvidia (NVDA) both recorded gains of over 3%, while Amazon (AMZN) climbed more than 1.5% to attain a new intraday peak.
In terms of inflation, Thursday painted a slightly more positive picture for investors: The Producer Price Index for March showed a 0.2% increase from the previous month, a rate of growth lower than what economists had predicted. The year-over-year growth of 2.1% was also under the estimated figures. Nevertheless, this annual growth marked the fastest surge in producer prices over nearly a year.
Equities retreated and bond yields soared following a March CPI report that exceeded expectations, causing investors to review their forecasts for Federal Reserve policy adjustments. Currently, the market projects just two rate cuts in 2024, anticipated later in the year than initially expected.
Find out more: The implications of the rate decision by the Fed on bank accounts, CDs, loans, and credit cards.
Against this backdrop, there is optimism that first-quarter corporate results can propel stocks forward, given the limited indications that elevated borrowing costs are impeding earnings growth. As earnings reports trickle in, investors are preparing for quarterly updates from some of the largest banks in the U.S., including JPMorgan (JPM), marking the official start of the earning season on Friday.
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Thu, April 11, 2024 at 12:34 PM PDT
Mortgage rates surge to nearly 7.4%
Mortgage rates are once again on the rise as the likelihood of extended higher interest rates pervades the markets.
Yahoo Finance’s Gabriela-Cruz Martinez presents:
Homebuyers are experiencing unpredictability due to the escalating mortgage rates, with the outlook taking a pessimistic turn.
The average rate on a 30-year mortgage surged to 7.37% on Thursday, a significant escalation from 7.11% at the beginning of the…
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