Damian J. By Trois, AP Business writer
Stocks gained momentum in early Wall Street trading Friday with technology companies and banks.
Comprehensive gains, if they hold, can help major indexes avoid second weekly losses. The market is churning due to tug of war amid hopes of economic growth and raising concerns about rising inflation.
The S&P 500 index rose 0.6% to 10:03 pm Eastern. The Dow Jones Industrial Average gained 172 points or 0.5% to 32,790 and the Nasdaq climbed 0.6%.
Technology stocks were the biggest gainers in the initial period. The sector, which has benefited the entire pandemic, has been cut off as investors are pouring money into stocks that are poised to benefit more from the growing economy. Cisco Systems rose 1.2% and Texas Instruments rose 1%.
Banks made a strong profit after the Federal Reserve, saying it would raise the limit on the dividends that banks could pay and the share buybacks they could make. The sector is also getting a boost as bond yields rise again after a brief halt. JPMorgan Chase gained 1.1% and Bank of America gained 2.2%.
Higher bond yields allow banks to charge more attractive interest on all types of loans and are also an indication that the economy is moving forward with its recovery.
The yield on the 10-year Treasury note rose from 1.61% to 1.67% late Thursday. It was up more than 1.70% last week and was raising some concerns about inflation, although most analysts expect a relatively modest increase in inflation as the economy grows.
Energy companies, the biggest so far in 2021, were given another boost as crude oil prices rose 3.5%. The OPEC oil cartel is tightening supply while demand is steadily increasing, pushing oil prices higher. Exxon Mobil climbed 1.1%.
Investors rejected a weak report on consumer spending for February, which was hampered by inclement weather. The impingement is expected to be temporary after the excitement of the recent round which puts more money in people’s pockets and could boost spending in the coming months.
She was already playing fast in spending. L. Brands, owner of Victoria’s Secret & Bath & Body Works, jumped 6.8% after forecasting its first-quarter profit, citing higher sales as incentives reach Czech people and relaxed the COVID-19 ban Is given.
The international market also gained momentum. Germany’s DAX rose 0.9%, Paris’s CAC 40 rose 0.7% and Britain’s FTSE 100 rose 0.9%. Indices also rose in Asia.
Copyright 2021 associated Press. All rights reserved. This content may not be published, broadcast, rewritten or redistributed.