Sat, September 25, 2021


Tech shares gain after chipmaker M&A; oil climbs

Tech shares rose after Advanced Micro Devices announced a $35 billion takeover of another chipmaker, helping to blunt concern about the impact of growing coronavirus infections. Oil climbed.



The tech strength wasn't enough to buoy the S&P 500 Index, which declined for a second straight day. Almost four stocks fell for every one that rose, with banks bearing the brunt of selling. Xilinx Inc. surged after agreeing to be bought by AMD. Megacap tech names including Inc. and Apple Inc. also gained as investors sought out companies that fare well during lockdowns.

The Stoxx Europe 600 Index fell to its lowest since May amid concern about the faster spread of the coronavirus on the continent. BP Plc warned of many challenges ahead as the pace of recovery in oil demand remained uncertain.

Stocks have been knocked around in recent weeks by speculation about whether lawmakers will pass a fiscal stimulus package, but with almost no possibility of that happening before Americans vote Nov. 3, investors were looking for fresh insight into corporate America's health. A U.S. consumer confidence report came in worse than forecast Tuesday as data showed Covid-19 hospitalizations have risen at least 10% in the past week in 32 states and the nation's capital.

"Covid case counts and hospitalizations continue to rise -- these will continue to be closely watched as investors gauge the likelihood of more stringent mitigation measures," said Yousef Abbasi, global market strategist at StoneX.

Elsewhere, the dollar slipped and Treasury yields dipped. Crude oil climbed as U.S. Gulf producers shut production ahead of Tropical Storm Zeta. Bitcoin rose past $13,500, approaching levels not seen since just after the burst of the cryptocurrency market bubble almost three years ago.

Here are the main moves in markets:


- The S&P 500 Index fell 0.3% as of 4 p.m. EDT.

- The Stoxx Europe 600 Index decreased 1%.

- The MSCI Asia Pacific Index rose 0.2%.


- The Bloomberg Dollar Spot Index dipped 0.1%.

- The British pound rose 0.2% to $1.3055.

- The Japanese yen strengthened 0.3% to 104.49 per dollar.


- The yield on 10-year Treasuries dipped three basis points to 0.77%.

- Germany's 10-year yield decreased four basis points to -0.62%.

- Britain's 10-year yield fell four basis points to 0.23%.


- West Texas Intermediate crude added 2.2% to $39.42 a barrel.

- Gold strengthened 0.3% to $1,908.13 an ounce.


Published : October 28, 2020

By : Syndication Washington Post, Bloomberg · Vildana Hajric · BUSINESS