BUSINESS Stocks climb as Fed eases rate concern, tech rises


Stocks climb as Fed eases rate concern, tech rises


07:11, February 24, 2018

“Stocks climb as Fed eases rate concern, tech rises”的图片搜索结果

Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., February 6, 2018. REUTERS/Brendan McDermid

U.S. stocks advanced on Friday, buoyed by gains in technology stocks and a pullback in Treasury yields as the Federal Reserve eased concerns about the path of interest rate hikes this year.

The central bank, looking past the recent stock market sell-off and inflation concerns, said it expected economic growth to remain steady and saw no serious risks on the horizon that might pause its planned pace of rate hikes.

Investors largely expect the Fed to raise rates three times this year, beginning with its next meeting in March, the first under new Chair Jerome Powell. Traders currently see a 95.5 percent chance of a quarter-point hike next month, according to Thomson Reuters data.

“The Fed has come out and made an announcement basically reinforcing the idea they are still on track for three rate hikes this year, which had been their forecast before we got some of the increased inflation news over the last month,” said Alec Young, managing director of global markets research at FTSE Russell in New York.

“It signals to the markets that while there is increased concern about higher rates and inflation, the Fed has really not seen enough to justify getting much more hawkish.”

Powell’s first public outing will be on Tuesday, when he will testify separately before the House and Senate committees.

The Dow Jones Industrial Average .DJI rose 229.23 points, or 0.92 percent, to 25,191.71, the S&P 500 .SPX gained 31.89 points, or 1.18 percent, to 2,735.85 and the Nasdaq Composite .IXIC added 98.50 points, or 1.37 percent, to 7,308.59.

Benchmark 10-year notes US10YT=RR last rose 13/32 in price to yield 2.8714 percent, from 2.917 percent late on Thursday.

The dip in yields helped boost bond proxy sector such as utilities, up 2.20 percent, and real estate .SPLRCR, up 1.50 percent.

Tech shares .SPLRCT climbed 1.69 percent led by gains in Hewlett Packard Enterprise (HPE.N), which rose 10.2 percent and HP Inc (HPQ.N), up 3.2 percent.

The two companies created from the split of Hewlett Packard Co in 2015, reported strong results and HPE also announced a plan to return $7 billion to shareholders.

Blue Buffalo Pet Products (BUFF.O) jumped 17.23 percent after General Mills (GIS.N) said it would buy the natural pet food maker for $8 billion. General Mills was the biggest percentage decline on S&P 500, falling 4.08 percent.

Advancing issues outnumbered declining ones on the NYSE by a 3.29-to-1 ratio; on Nasdaq, a 2.17-to-1 ratio favored advancers.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue