{"id":109074,"date":"2021-03-09T15:59:07","date_gmt":"2021-03-09T15:59:07","guid":{"rendered":"https:\/\/fin2me.com\/?p=109074"},"modified":"2021-03-09T15:59:07","modified_gmt":"2021-03-09T15:59:07","slug":"nasdaq-roars-back-as-tech-stocks-gain-ground","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/nasdaq-roars-back-as-tech-stocks-gain-ground\/","title":{"rendered":"Nasdaq roars back as tech stocks gain ground"},"content":{"rendered":"
(Reuters) – U.S. stocks advanced on Tuesday, with the Nasdaq jumping over 3% to recoup its losses in the previous session as U.S. bond yields retreated and investors picked up battered technology stocks.<\/p> Among the biggest boosts to the S&P 500 and the Nasdaq were Tesla Inc, Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped between 2.4% and 7.2% after sharp losses in recent weeks as a rise in yields raised concerns over their high valuations.<\/p>\n Signs that a $1.9 trillion coronavirus relief package was closing in on final approval sparked a spike in yields on Monday, pushing the tech-heavy Nasdaq to end more than 10% below its Feb. 12 closing high that confirmed a correction.<\/p>\n U.S. 10-year Treasury bond yields eased to 1.54% after hovering near 13-month highs of 1.613% in the prior session. Longer-dated yields have jumped over the last month as investors price in a faster-than-expected economic rebound and higher inflation.<\/p>\n Higher yields can weigh even more on tech and growth stocks with lofty valuations, as they threaten to erode the value of their longer-term cash flows.<\/p>\n \u201cTech stocks are overdue for some kind of bounce after the downfall they have had so far with most investor maintaining a positive outlook (on them) in the medium to longer term,\u201d said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut.<\/p>\n \u201cPotential headwind for the market is if interest rates rise further from this point over the short period… since they have risen too fast in too little time.\u201d<\/p>\n At 9:59 a.m. ET, the Dow Jones Industrial Average rose 168.01 points, or 0.53%, to 31,970.45, the S&P 500 gained 57.06 points, or 1.49%, to 3,878.41 and the Nasdaq Composite gained 399.55 points, or 3.17%, to 13,008.71.<\/p>\n The rise in yields has accelerated a rotation from \u201cstay-at-home\u201d winners to stocks primed to benefit from an economic reopening, helping the blue-chip Dow hit an intraday record high on Monday.<\/p>\n The global economic outlook has brightened as vaccine rollouts gain speed and the United States launches a massive new stimulus package, the Organisation for Economic Cooperation and Development said, hiking its 2021 growth forecasts.<\/p>\n The U.S. House of Representatives could approve the relief bill as early as Tuesday, with a vote allowing the Democratic president to sign the legislation into law later this week.<\/p>\n The bank index dropped 2% after vaulting to a new 14-year peak. Financials and energy sectors were in the red.<\/p>\n GameStop was up 18%, building on Monday\u2019s rise of over 40% on the video retailer\u2019s e-commerce strategy and speculation that small investors will pour stimulus checks into markets.<\/p>\n Advancing issues outnumbered decliners by a 2-to-1 ratio on the NYSE and by a 3.2-to-1 ratio on the Nasdaq.<\/p>\n The S&P 500 posted 15 new 52-week highs and no new low, while the Nasdaq recorded 131 new highs and eight new lows.<\/p>\n