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/2023.02.13
/Wall St climbs higher on lift from battered growth stocks.txt
(In seventh paragraph, corrects sector name to "communication | |
services", not "consumer services")*Meta climbs on report of more layoffs*Fidelity National slumps on payments business spinoff*Indexes up: Dow 0.58%, S&P 0.52%, Nasdaq 0.65%Feb 13 (Reuters) - U.S. main stock indexes rose on | |
Monday as investors piled into beaten-down megacap growth stocks | |
with a decline in Treasury yields boosting sentiment, while Meta | |
Platforms gained on reports the Facebook parent was planning | |
fresh layoffs.Apple Inc, Amazon.com Inc, Alphabet Inc | |
, and Microsoft Corp added between 0.7% and | |
3.4%, pushing up the Russell 1000 Growth sector by 0.7%."(Investors) have been holding back during the regime of | |
rate hikes because they believed it would kill the growth of | |
technology type stocks," said Peter Andersen, founder of | |
Andersen Capital Management.Andersen added that the Fed is now signaling that its near | |
the end of its tightening cycle, which could provide an added | |
boost to such high-growth firms.All U.S. indexes clocked their worst declines last year | |
since the financial crisis of 2008, led by a 33% slump in the | |
tech-heavy Nasdaq, on fears that the Federal Reserve | |
would tip the economy into a recession with its hawkish monetary | |
policy.While money markets are expecting rates to peak to 5.2% in | |
July, a resilient labor market has lifted hopes of a | |
milder-than-expected recession.Meanwhile, Meta rose 1.8% on reports over the | |
weekend that the Facebook parent is preparing to announce a | |
fresh round of job cuts, pushing the communication services | |
sector 0.3% higher.Microsoft added 3.4% and was the biggest boost to the | |
blue-chip Dow after brokerage Stifel said the tech-giant | |
is clearly looking to up-end Alphabet's Google Search dominance | |
through its integration with ChatGPT.Ten of the 11 major S&P 500 sector were in the black, with | |
the energy sector's 1.1% fall making it the sole sector | |
lower as crude oil prices slipped on caution ahead of domestic | |
inflation data.Markets now await January inflation on Tuesday and retail | |
sales data later in the week to reassess their bets on the | |
central bank's monetary policy path.At 10:12 a.m. ET, the Dow Jones Industrial Average | |
was up 196.57 points, or 0.58%, at 34,065.84, the S&P 500 | |
was up 21.17 points, or 0.52%, at 4,111.63, and the Nasdaq | |
Composite was up 75.59 points, or 0.65%, at 11,793.71.Further buoying gains in megacap names was declining yields | |
on the U.S. 10-year Treasury note after hitting a | |
fresh six-week high earlier in the day.A fall in Treasury note yields indicate traders expect | |
greater return from investments in risky assets.Fidelity National Information Services Inc plunged | |
15.4% following its decision to spin off its merchant payments | |
business.Advancing issues outnumbered decliners by a 2.26-to-1 ratio | |
on the NYSE and by a 1.31-to-1 ratio on the Nasdaq.The S&P index recorded three new 52-week highs and no new | |
low, while the Nasdaq recorded 39 new highs and 41 new lows. | |
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju | |
Samuel and Sriraj Kalluvila) |