US stocks rally as bond yields retreat
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Traders work on the floor of the New York Stock Exchange, during opening bell, in New York City.
PHOTO: AFP
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NEW YORK - Resurgent tech shares led US markets higher Wednesday, on a retreat in Treasury bond yields amid optimism for earnings from artificial intelligence player Nvidia.
Shares of Netflix, Apple and Facebook parent Meta all piled on more than 2 per cent. Nvidia itself, whose results are due after the bell, gained 3.2 per cent during the day.
Analysts said stocks were supported by a drop in yields of the 10-year US Treasury note, which have hit multi-year peaks in recent sessions.
The drop in yields “created a little bit of an opportunity to buy on some of the weakness,” said Briefing.com analyst Patrick O’Hare.
The Dow Jones Industrial Average finished up 0.5 per cent at 34,472.98.
The broad-based S&P 500 gained 1.1 per cent to 4,436.01, while the tech-rich Nasdaq Composite Index jumped 1.6 per cent to 13,721.03.
Stocks have been on the back foot for most of August as Treasury yields have spiked.
But Mr O’Hare said there are hopes investors are “close to the end” of a rough period for stocks, with better trading liquidity expected after the August holidays.
In earnings news, Foot Locker sank more than 28 per cent as it reported a quarterly loss of US$5 million (S$6.7 million), while noting a “softening” in business trends in July.
But Abercrombie & Fitch surged more than 23 per cent as it swung to profitability in the second quarter on higher sales. The apparel retailer reported “strong customer receptivity of our brands and product.” AFP
