Wall St
The S&P 500 Technology Index (.SPLRCT) rose 1.1% and gave the S&P 500 the strongest boost, while the Philadelphia Semiconductor Index (.SOX) hit an all-time high in nearly a year.
Wednesday’s strong gains came on optimism that the explosive sales decline has come to an end. US stocks rose on Thursday as technology-related stocks extended their recent strong run, while US regional stocks fell as the Biden administration proposed tough measures to help reduce risks.
The S&P 500 Technology Index (.SPLRCT) rose 1.1% and gave the S&P 500 the strongest boost, while the Philadelphia Semiconductor Index (.SOX) hit an all-time high in nearly a year. Wednesday’s strong gains came on optimism that the explosive sales decline has come to an end.Also Read:New York Community Bank agrees to buy failed Signature Bank
Shares of US regional banks fell as the Biden administration called for tougher legislation that would boost the central bank without going to Congress. The KBW Regional Banks Index (.KRX) lost 2% and the S&P 500 Financials Index (.SPSY) fell 0.3%, the only S&P 500 regional and regional losers on the day.
“Technology is probably the furthest sector from money,” so there is a shift in money, said Jack Ablin, chief investment officer at Cresset Capital in Chicago. The banking crisis, which began earlier this month with the collapse of two U.S. regional lenders, has raised concerns about a major financial crisis.
Earlier in the first quarter, the technology sector was up about 20% for the period, leading the sector’s profit in telecommunications services, which rose about 18%. The Nasdaq is on track for its fourth-biggest percentage gain since the end of 2020.Also Read:10 Things Every Investor should know before entering the Stock Market
Investors are eyeing the February reading of the Personal Consumption Expenditure (PCE) index because Friday’s January numbers showed a sharp increase in consumer spending. Three Federal Reserve officials left the door open on Thursday for more rate hikes to reduce inflation, noting that the crisis in the banking sector could create more headwinds for the economy.
The Dow Jones Industrial Average (.DJI) rose 141.43 points, or 0.43%, to 32,859.03, the S&P 500 (.SPX) gained 23.02 points, or 0.57%, to 4,050.83 and the Nasdaq Composite, or 8IX.2 plus . 0.73%, up to 12,013.47. Clients who buy futures pay a 55% chance of a 25-point hike based on the May 2-3 Fed meeting.
Data released earlier on Thursday showed jobless claims last week rose more than expected last week, indicating a chill in the labor market. Furthermore, GDP in the fourth quarter was slightly lower at 2.6% compared to previous estimates of 2.7%, which argues for the easing of Fed policy.
In another report, the Commerce Department confirmed that the economy grew strongly in the fourth quarter, but most of the increase in production came from inventory accumulation. Also Read: Elon Musk predicts Trump will win by a ‘landslide’ in 2024. Shares of U.S.-listed Alibaba Group Holding rose 3.5% on news that its arms arm has begun preparations and banking for an initial public offering in Hong Kong, while JD.com’s jumped 7.8% on plans to divest its infrastructure unit. arm.
Faraday Future Intelligent Electric Inc ( FFIE.O ) rose after the company announced it had begun production of its first luxury electric car after a month-long delay, but the stock ended the day slightly lower. Issues continue to outnumber discount issues on the NYSE by a ratio of 2.70 to 1; on the Nasdaq, a ratio of 1.18 to 1 advanced interest.
The S&P 500 posted eight new 52-week highs and no new lows; The Nasdaq Composite recorded 63 new highs and 151 new lows. Volume on US exchanges was 10.36 billion shares, compared to an average of 12.68 billion for the full session over the past 20 trading days.
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