Dow Jones and the S&P 500 rose on Thursday, putting a stop to continuous slide for the past two sessions. Nasdaq, on the other hand, continued to drop for the third straight session.
As US Treasury yields began easing, gains in shares belonging to the industrial and energy sectors began to rise. This boosted the Dow and S&P during the market hours.
The major indexes progressed early after worries regarding the Federal Reserve pushing the interest rate hikes to move at a faster pace began to ease. St. Louis Fed President James Bullard voiced his concerns that a “bunch of hikes” could turn the Fed policy restrictive.
Those gains soon faded after investors became more cautious of what is likely to be a rising interest rate environment.
“The rally on Bullard was a little overzealous,” said chief market strategist Michael O’Rourke.
“I wouldn’t be out there aggressively buying stocks because until the interest rate picture clarifies, and it probably will do so at a higher level, it is just going to create problems for equities,” he said.
The Dow closed at 24,962.48, adding 164.70 points, it surged as much as 358.94 earlier in the session. The 30-stock index had United Technologies as its best-performing stocks.
Meanwhile, the S&P 500 added 0.1 percent, ending the session with a rollover during the final hour of trading. The broad index was at 2,703.96 points by the end of the session. It rose to as much as 1.1 percent during session highs.
On Wednesday, stocks tumbled following the release of minutes from the Fed’s January meeting. In the record, it showed that the central bank’s rate-setting committee has become more confident in the need to continue raising rates.
Market participants are still expecting interest rates to rise three times this year. They predict the hikes to begin with its next meeting in March.
Nasdaq Closes Lower
The tech-heavy Nasdaq composite closed lower for a third straight day on Thursday. This has been its longest losing streak since November 2016.
Nasdaq was 0.1 percent lower at the end of the session, despite rising as much as 0.9 percent during session high. It was last at 7,210.09 points.
The index was mostly dragged down by declines in Netflix, Google-parent Alphabet, and the iShares Nasdaq Biotechnology exchange-traded fund (IBB).
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