U.S. Stocks Rise as Tech Lags; Treasuries Climb: Markets Wrap
Bells stand under an electronic board displaying stock figures on the trading floor of the Philippine Stock Exchange in Bonifacio Global City (BGC) Metro Manila, the Philippines. (Photographer: Veejay Villafranca/Bloomberg)

U.S. Stocks Rise as Tech Lags; Treasuries Climb: Markets Wrap

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. The Dow Jones Industrial Average rose to a record, closing above 32,000 for the first time. 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.

U.S. Stocks Rise as Tech Lags; Treasuries Climb: Markets Wrap

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.

U.S. Stocks Rise as Tech Lags; Treasuries Climb: Markets Wrap

Here are some key events to watch:

  • The U.S. government auctions 30-year Treasuries Thursday.
  • The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.

These are the main moves in markets:


  • The S&P 500 Index rose 0.6% as of 4 p.m. New York time.
  • 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 Treasuries fell one basis point to 1.52%.
  • The yield on two-year Treasuries 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.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.