Nasdaq surges on tech-stock strength as Treasury yields cool from 14-month high
Tech stocksled the broader rally on Monday as investors eye a pullback in Treasury yields.
- Bank of America revised its forecast from 1.75% to 2.15% for the 10-year US Treasury note by year-end.
- Twitter CEO Jack Dorsey sold his first-ever tweet for $2.9 million dollars as an NFT.
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Tech stocks led the broader rally on Monday as investors eye pullback in Treasury yields and resumed buying after last week's volatility.
Bank of America revised its forecast from 1.75% to 2.15% for the 10-year US Treasury note by year-end, adding that "curves appear headed steeper but not uniformly."
"Our prior forecasts identified the likely drivers and magnitude of the move, although we underestimated the speed of the adjustment. Our forecasts are in-line with fair value implied by our US economist projections," the bank said in a note on Monday.
Here's where US indexes stood at the 4 p.m. ET close on Monday:
- S&P 500: 3,940.51, up 0.7%
- Dow Jones industrial average: 32,731.14, up 0.32% (103.17 points)
- Nasdaq composite: 13,377.54, up 1.23%
On Friday, tech stocks rebounded after Treasury yields stabilized. However, the Fed's announcement earlier that day that it would not extend the temporary regulatory relief it granted banks after March 31 sent bank stocks lower.
Kansas City Southern surged 14% following the railway operator's deal to be purchased by Canadian Pacific Railway for $25 billion. The transaction set to create the first rail network that spans North America.
Morgan Stanley Investment Management is "extremely bullish" on value stocks, especially after the Federal Reserve's decision to keep its policy in place until the US economy rebounds last week. Continued liquidity and no change in policy mean sustained performance for value stocks, Andrew Slimmon, managing director and senior portfolio manager, explained.
In the crypto space, Twitter CEO Jack Dorsey sold his first-ever tweet for $2.9 million dollars as a non-fungible token, or NFT, on Monday. Hours after the news broke, the executive donated the sum to a nonprofit's Africa response.
Bitcoin fell 2.97% to $55,782 as of Monday 4 p.m. ET, after scaling above the $57,000-level earlier in the day.
Gold slipped as much as 0.32%, to $1,739.79 per ounce.
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