Stocks lift off, as investors strap in for more volatility

E-mini Dow Jones Industrial Average

Reuters has stated that the "trigger" could also be the data released by the government which showed wages rising at the fastest rate since 2009, with an annual increase of 2.9 per cent, sparking worries about inflation and higher interest rates and leading to a sharp rise in United States bond yields.

Technology companies and banks, some of the biggest winners over the past year, rose up the most.

Those worries have been amplified by increasing Treasury bond yields.

The market is coming off two weeks of steep losses that put stocks into a "correction" — a decline of 10 percent from a peak — for the first time in two years. They have slumped recently after winning a big portion of the market's gains over the a year ago.

For Chinese companies listed in the United States, shares of Chinese e-commerce giant Alibaba rose 0.44 percent to end at 177.44 US dollars on Monday, while shares of another Chinese technology company Baidu soared 2.77 percent to close at 221.64 USA dollars. The Nasdaq composite saw a 107-point increase to 6,981.

Oil prices have dropped since reaching long-time highs in late January, when USA crude peaked at $66 a barrel.

"This looks like a corrective phase rather than the start of a bear market", said Katie Stockton, founder of Fairlead Strategies. On Monday General Motors picked up 60 cents, or 1.4 per cent, to $42.06 and Netflix climbed $5.84, or 2.3 per cent, to $255.32.

Saroliya added, "Whatever we think about the precise triggers - be it higher rates driven by inflation surprises or a messy liquidation of volatility-sensitive investments - what's evident yet again is that psychology exerts a disproportionate impact on markets".

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

OIL: Benchmark U.S. crude fell 29 cents to $59.00 per barrel in electronic trading on the New York Mercantile Exchange.

The Dow industrials were up 270 points, or 1.1 percent, to 24,461.

The Dow industrials were up 279 points, or 1.2 percent, to 24,471. Disney agreed to buy Fox's movie and television studios and some cable and worldwide TV businesses in December for $52.4 billion.

In other energy trading, wholesale gasoline fell 2 cents to $1.68 a gallon.

Have You Added This Stock To Your Watch-List?

Wall Street climbed on Tuesday for a third straight session, buoyed by Amazon.com and Apple, while investors focused on inflation data on Wednesday that could upset the market's fragile recovery - or clear the way for additional gains. The euro rose to $1.23 from $1.2231.

If inflation accelerates, driven in part by higher wages, the Fed could raise interest rates more often and more steeply than previously anticipated.

The massive sell off began February 2 when anxieties about the fed's impending interest rate hike led to a degree of market volatility unseen in years.

Related:

Comments


Other news