Belpointe chief strategist David Nelson and New Street Advisors Group CEO and CIO Delano Saporu discuss their prospects for the stock market.
U.S. stock futures are trading higher, increasing Tuesday’s gains from the best Nasdaq session in more than four months.
The main future indices suggest an increase of 0.2% at the beginning of Wednesday’s trading session.
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Investors will begin to examine retail inflation when the Bureau of Labor Statistics releases its February consumer price report. Prices are expected to rise 0.4%, slightly above the 0.3% increase of the previous month. On a year-over-year basis, notice prices jumping 1.7%, up from the 1.4% increase in January.
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Asian stock prices followed Wall Street’s high on Wednesday after a recovery by major technology companies.
The Nikkei 225 in Tokyo advanced less than 0.1%, the Hang Seng in Hong Kong rose 0.5% and the Shanghai Composite Index of China fell 0.1%.
In Europe, London’s FTSE fell 0.2%, Germany’s DAX added 0.3% and France’s CAC added 0.5%.
The Wall Street S&P 500 benchmark index closed up 1.4%, led by gains from Apple, Amazon and other major technology companies. The Nasdaq composite index, dominated by technology stocks, rose 3.7% to its biggest gain in four months.
The markets are adjusting to an increase in long-term interest rates in the bond market, which has taken money out of the shares. A reversal in bond market trends, at least temporarily, has sent investors back to the companies they hope will thrive after the coronavirus pandemic ends.
The yield of the 10-year reference notes was 1.55%.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31832.74 | +30.30 | + 0.10% |
| SP500 | S&P 500 | 3875.44 | +54.09 | + 1.42% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13073.824517 | +464.66 | + 3.69% |
On Wall Street, the S&P 500 rose on Tuesday to 3,875.44. Communication companies and those that depend on consumer spending contributed to the increase. Financial, energy and industrial stocks lagged behind the broader market.
Apple rose 4.1%, chip maker Nvidia rose 8% and Tesla rose 19.6% for the biggest gain on the S&P 500.
The Dow Jones Industrial Average, which is less weighted in technology, rose 0.1% to 31,832.74.
The Nasdaq advanced to 13,073.82. Despite this, the index is 7.2% below its February 12 high. On Monday, it closed 10% below its peak in what is known as a Wall Street correction.
Financial sector stocks, which benefited from the increase in bond yields, fell the most on Tuesday. Bank of America fell 2.2%, while American Express fell 3.4%. Banks and credit card issuers tend to do well when interest rates are rising, because they can charge higher fees.
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Investors are betting that the $ 1.9 trillion government stimulus will help lift the US economy out of its coronavirus-induced malaise. The package set for final approval by the U.S. House on Wednesday provides direct payments of up to $ 1,400 for most Americans and extends emergency unemployment benefits that help sustain consumer spending, the economy’s primary driver.
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In the energy markets, US benchmark oil dropped 27 cents to $ 63.74 a barrel in e-commerce on the New York Mercantile Exchange. The contract sank $ 1.04 on Tuesday to $ 64.01. Brent crude, used to price international oil, fell 40 cents to $ 67.12 a barrel in London. He dropped 72 cents in the previous session to $ 67.52.
The Associated Press contributed to this article.