U.S. markets open in 1 hour 39 minutes
  • S&P Futures

    4,512.00
    +3.50 (+0.08%)
     
  • Dow Futures

    34,121.00
    +119.00 (+0.35%)
     
  • Nasdaq Futures

    15,819.25
    -50.50 (-0.32%)
     
  • Russell 2000 Futures

    2,152.20
    +5.90 (+0.27%)
     
  • Crude Oil

    65.28
    -0.29 (-0.44%)
     
  • Gold

    1,781.00
    -3.30 (-0.18%)
     
  • Silver

    22.44
    +0.11 (+0.47%)
     
  • EUR/USD

    1.1351
    +0.0028 (+0.25%)
     
  • 10-Yr Bond

    1.4340
    0.0000 (0.00%)
     
  • Vix

    29.89
    +2.70 (+9.93%)
     
  • GBP/USD

    1.3317
    +0.0040 (+0.30%)
     
  • USD/JPY

    112.7810
    +0.0010 (+0.00%)
     
  • BTC-USD

    56,419.75
    -816.88 (-1.43%)
     
  • CMC Crypto 200

    1,439.23
    -29.85 (-2.03%)
     
  • FTSE 100

    7,101.40
    -67.28 (-0.94%)
     
  • Nikkei 225

    27,753.37
    -182.25 (-0.65%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Stock market news live updates: Stocks rise, tech stocks rebound as Treasury yields retreat

·Reporter
·7 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

undefined

Stock traded higher on Monday as technology stocks rose to recover some of last week's declines.

[Click here to read what's moving markets heading into Tuesday, March 23]

The Dow turned positive even as shares of component companies JPMorgan Chase (JPM) and Goldman Sachs (GS) lagged. Bank stocks, industrials and other cyclical shares including small caps underperformed, giving back some recent gains. Technology shares outperformed after another week of declines last week, and the Nasdaq added more than 1%.

The equity market moves coincided with steadying government bond yields. Treasury yields pulled back, especially on the long end of the curve, and the benchmark 10-year yield hovered below 1.7%. Last week, the 10-year yield jumped to more than 1.7% to reach its highest level since January 2020 as concerns that the quickly recovering economy might generate a rapid rise in inflation lingered. Investors are poised to receive the latest report on the Federal Reserve's preferred inflation gauge, or core personal consumption expenditures, later this week.

"Investors will remain anxiously focused on interest rates in coming months," Goldman Sachs strategist David Kostin wrote in a note Monday. "Like the Fed, our economists forecast a transient rise in core PCE [personal consumption expenditures] inflation this spring as a result of short-term factors including the base effect of weak inflation in 2020."

"Although inflation will likely recede to 2.0% in 2022, investors will fear the above-target inflation may persist and could lead to further upward pressure on interest rates," Kostin added. "Our rates strategists forecast the 10-year Treasury yield will hit 1.8% by June."

With investors eyeing both the economic recovery and prospects of inflation, cyclical and value shares have strongly outperformed their tech and growth counterparts so far in 2021. Some strategists said they believed these new leaders in the market had room to run as the recovery chugs along.

"Our U.S. Regime Indicator has shifted to mid-cycle, a phase where inflation is typically strongest," Bank of America strategist Jill Carey Hall wrote in a note. "In this phase, small caps and value have typically outperformed large caps and growth – further supported by the profits recovery and economic rebound we expect this year."

However, "inflation-sensitive sectors such as energy and materials are still trading at big discounts to history across a variety of metrics we track, and the S&P 500 overall is discounting a tepid inflation outlook," she added. "Within small caps, cyclicals continue to trade at a significant discount to defensives, with inflation-sensitive small cap sectors like Energy broadly inexpensive both vs. history and vs. large cap peers."

4:03 p.m. ET: Stocks end higher, Nasdaq rises 1.2% as tech stocks rebound; Tesla gains 2.3%

Here were the main moves in markets as of 4:03 p.m. ET:

  • S&P 500 (^GSPC): +27.46 (+0.70%) to 3,940.56

  • Dow (^DJI): +103.17 (+0.32%) to 32,731.14

  • Nasdaq (^IXIC): +162.31 (+1.23%) to 13,377.54

  • Crude (CL=F): +$0.05 (+0.08%) to $61.47 a barrel

  • Gold (GC=F): -$3.00 (-0.17%) to $1,738.70 per ounce

  • 10-year Treasury (^TNX): -4.8 bps to yield 1.6840%

1:53 p.m. ET: Tesla shares surge after Ark Invest says stock could hit $3,000 per share by 2025

Shares of Tesla (TSLA) rallied by more than 6% on Monday after Ark Invest issued a new, even more bullish price target on shares of the electric car-maker.

The firm said in a report over the weekend it anticipates Tesla's stock could reach $3,000 per share by 2025, or more than quadrupling from its current share price of around $694. One of the key tenets of the bullish thesis centers on Tesla's opportunity to deploy autonomous vehicles. According to Ark, there is an about 50% chance that Tesla achieves fully autonomous driving within the next five years, speeding up its ability to build out a functioning robotaxi network.

According to Bloomberg data, the average 12-month price target among major Wall Street firms for shares of Tesla was about $634 per share, implying a decline from current levels.

1:35 p.m. ET: Kansas City Southern stock jumps more than 12% after Canadian Pacific Railway announces $25 billion purchase agreement

Shares of Kansas City Southern (KSU) jumped more than 12% intraday on Monday, holding onto earlier gains after Canadian Pacific Railway (CP) announced this weekend that it agreed to purchase the company in a $25 billion deal. This would mark the largest Canadian purchase of a U.S. asset in about five years, according to Bloomberg data.

Through the deal, the companies will create the first railway network connecting the U.S., Mexico and Canada. The announcement comes less than a year after the newly upgraded U.S.-Mexico-Canada trade pact took effect in July 2020.

The new company will be renamed Canadian Pacific Kansas City, have a combined approximately $8.7 billion in annual revenue and a workforce of about 20,000 people. It will be run by Canadian Pacific CEO Keith Creel.

1:03 p.m. ET: Stocks extend gains, tech shares maintain leadership

The three major indexes held onto gains intraday on Monday, with the tech-heavy Nasdaq leading the way higher with a gain of 1.6%. Each of the FAANG names – Facebook, Apple, Amazon, Netflix and Alphabet – posted advances, recovering some recent losses amid the rotation to cyclical shares.

In the S&P 500, the financials, energy and industrial sectors unwound some recent gains and slipped intraday. Bank stocks especially came under pressure as Treasury yields fell, with higher yields helping to boost bank profits.

10:00 a.m. ET: Existing home sales sink more than expected in February, dropping 6.6%

Sales of previously owned homes fell more than expected in February to reach a six-month low, as inventory tightened across the country.

Existing home sales dropped 6.6% in February over January, declining to a seasonally adjusted annual rate of 6.22 million, according to the National Association of Realtors (NAR). Consensus economists were expecting a decline of just 2.8% for the month, according to Bloomberg consensus estimates.

January existing home sales were revised slightly down to 6.66 million from 6.69 million, representing an increase of just 0.2% over December.

Lawrence Yun, NAR's chief economist, attributed the drop in February home sales to "historically-low inventory," he said in a statement. However, the market is still outperforming pre-pandemic levels.

9:30 a.m. ET: Stocks mostly higher, S&P 500 and Nasdaq gain

Here's where markets were trading after the opening bell Monday morning:

  • S&P 500 (^GSPC): +6.17 points (+0.16%) to 3,919.27

  • Dow (^DJI): -49.96 points (-0.15%) to 32,578.01

  • Nasdaq (^IXIC): +81.21 (+0.61%) to 13,300.22

  • Crude (CL=F): +$0.18 (+0.29%) to $61.60 a barrel

  • Gold (GC=F): -$11.10 (-0.64%) to $1,730.60 per ounce

  • 10-year Treasury (^TNX): -4.1 bps to yield 1.691%

7:05 a.m. ET Monday: Stock futures point to a mixed open

Here's where markets were trading as of 7:05 a.m. ET Monday morning:

  • S&P 500 futures (ES=F): 3,901.75, up 2.25 points or 0.06%

  • Dow futures (YM=F): 32,438.00, down 65 points or 0.2%

  • Nasdaq futures (NQ=F): 12,942.75, up 98.25 points or 0.76%

  • Crude (CL=F): +$0.24 (+0.39%) to $61.66 a barrel

  • Gold (GC=F): -$10.30 (-0.59%) to $1,731.40 per ounce

  • 10-year Treasury (^TNX): -5.3 bps to yield 1.679%

People are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021.  REUTERS/Brendan McDermid
People are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Read more from Emily: