Wall Street ends mixed session marked by stimulus hopes and concerns about rising bond yields

4:15pm: US equities close mixed session

US stocks closed a mixed session, marked by stimulus hopes and concerns about rising interest rates.   

The Dow Jones Industrial Average jumped to an all-time high as rising reopening optimism continued to encourage the rotation into cyclical stocks. But surging bond yields rekindled valuation fears and halted a rally in tech stocks. 

On the day, the DJIA rose 293 points, or 0.90%, to 32,778. The S&P 500 increased 0.10% to 3,943 but the tech-heavy Nasdaq declined 0.59% to 13,319.

12.20pm: US stocks mixed

US stocks were mixed at lunch but the Dow Jones Industrial Average powered to a new high.

On Wall Street, the Dow was up over 167 points at 32,652, while the Nasdaq plunged 129 points to 13,267 as the yield on the 10-year Treasury bond rose.

The broader based S&P 500 shed around nine points at 3,930.

“The week is heading towards its end on a mixed note, the overall picture being one of gains and losses, although the Dow has stuck rigidly to the script and ground out another record high,” said IG index analyst Chris Beauchamp.

“Things are looking less rosy for the Nasdaq, which continues to participate sulkily in the general rally thanks to the ongoing bond yield drama. All the heavy lifting is being done by sectors like the banks, beneficiaries of higher yields, while tech is still struggling.”

He added: “Markets continue to doubt Jerome Powell’s reiteration of the Fed’s policy stance, so next week will doubtless see a rather exasperated chairman attempt to set out his stall once again while being questioned on how soon they will raise rates.”

10.25am: Proactive North America headlines:

Todos Medical Ltd (OTCQB:TOMDF) reveals $7.15 million in sales for the month of February 2021, representing a 38.1% month over month increase

Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) finalizes definitive agreement to acquire cannabis company Green Therapeutics

Thoughtful Brands Inc (CSE:TBI) (FRA:1WZ1) (OTCQB:PEMTF) strengthens sales and operation networks in North America and Europe

The Valens Company Inc (TSE:VLNS) (OTCQX:VLNCF) (FRA:7LV) enters into pre-roll manufacturing and distribution services deal with Experion Biotechnologies

American Manganese Inc (CVE:AMY) (OTCQB:AMYZF) awards C$2.7M contract to build two battery recycling plants to partner Kemetco

Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) (FRA:M5BQ) subsidiary CannMart receives its medical cannabis license renewal

9.40am: Wall Street mostly lower

The main indices on Wall Street began Friday’s session on a mixed footing, although the overall trend of the market appeared to be pointing lower in early deals.

Shortly after the opening bell, the Dow Jones Industrial Average was up 0.11% at 32,521, however the S&P 500 was down 0.39% at 3,923 while the Nasdaq dropped 1.35% to 13,217.

Traders seem to be struggling to maintain momentum following yesterday’s strong session, with optimism following the approval of new US stimulus showing signs of petering out towards the end of the week.

The latest US producer prices for February, which was in line with forecasts of 0.5% growth, also failed to provide much excitement.

8:00am: Wall Street points to weaker open

Futures are pointing at a soft open on Wall Street on Friday after the Dow closed Thursday’s session 1.5% higher at 32,297.02.

It was a record number for the index, which was lifted by Democrats in the House of Representatives passing Joe Biden’s US$1.9trn coronavirus (COVID-19) relief package.

The approval also pushed government bond yields up, with the US 10-year surpassing the 1.6% level again, because of prospects of stronger recovery and inflation.

“This should be – and so far has been – good for the US dollar and bad news for gold and technology shares,” commented Fawad Razaqzada, analyst at ThinkMarkets.

“Rising bond yields points to higher inflation, requiring tighter monetary policy from the Fed and other central banks. Investors worry that yields would rise further. If correct, this should be particularly bad for stocks of high-flying growth and technology stocks, as it makes their future cash flows less worthy.”

In fact, the tech-heavy Nasdaq is called 1.4% lower, with the Dow Jones Industrial Average forecast to open flat and the S&P 500 down 0.4%.

Four things to watch for on Friday:

• Fridays entries into the earnings diary include biotech Sorrento Therapeutics Inc (NASDAQ:SRNE), fashion retailer Buckle Inc (NYSE:BKE) and Chinese electric car and battery maker Kandi Technologies Group Inc (NASDAQ:KNDI)
• Shares in Tesla Inc (NASDAQ:TSLA) could attract some attention after the electric vehicle maker reported a fire at its factory in California
• Netflix Inc (NASDAQ:NFLX) may also get a look in after the streaming giant announced plans to crack down on password sharing users of its platform
• On the macro front, US producer prices for February will likely draw some attention as well as Michigan consumer sentiment data for March

Story by ProactiveInvestors