Tue, December 07, 2021


U.S. stocks rise as tech lags

U.S. equities advanced as the rotation into value stocks resumed following a weak inflation report. Treasury yields turned lower after a 10-year note auction. The dollar weakened.

The S&P 500 notched its best two-day advance since early February, led by financial firms and producers of raw materials. A lower-than-expected inflation reading eased concern that prices will spike higher if growth picks up as many economists now predict. Tech shares whose valuations look stretched in an era of higher yields slipped after Tuesday's rebound from weeks of selling.

The yield on the 10-year Treasury note fell toward 1.50%, with bonds rising after a government auction. The dollar retreated. The threat of higher prices as the economy revs and the Biden administration signs a $1.9 trillion spending package drove the rotation from growth stocks that led all of 2020 and into companies with businesses more closely tied to the economic cycle.

The dollar weakened versus major peers, sending the euro and pound higher. The Stoxx Europe 600 Index advanced. Crude topped $64 a barrel in New York, while gold futures edged higher. Bitcoin briefly topped $57,000.

The rising trend in bond yields is consistent with economic growth expectations, said Lauren Goodwin, portfolio strategist at New York Life Investments. That backdrop still favors cyclicals over defensive assets and "supports equities over bonds, and a weaker U.S. dollar," she said.

These are the main moves in markets:


- The S&P 500 Index rose 0.6% as of 4 p.m. EST.

- The Nasdaq 100 fell 0.3%

- The Stoxx Europe 600 Index climbed 0.4%.

- The MSCI Asia Pacific Index gained 0.4%.

- The MSCI Emerging Market Index rose 0.8%.


- The Bloomberg Dollar Spot Index slumped 0.3%.

- The euro was little rose 0.2% to $1.1925.

- The British pound added 0.3% to $1.3931.

- The onshore yuan was little changed at 6.508 per dollar.

- The Japanese yen rose 0.1% to 108.40 per dollar.


- The yield on 10-year Treasurys fell one basis point to 1.52%.

- The yield on two-year Treasurys dropped one basis point to 0.15%.

- Germany's 10-year yield declined one basis point to -0.31%.

- Britain's 10-year yield fell one basis point to 0.714%.

- Japan's 10-year yield climbed less than one basis point to 0.128%.


- West Texas Intermediate crude gained 1.2% to $64.78 a barrel.

- Brent crude increased 1% to $68.22 a barrel.

- Gold futures rose 0.4% to $1,723.50 an ounce.

Published : March 11, 2021

By : Syndication Washington Post, Bloomberg · Andreea Papuc, Emily Barrett