Wall Street ends on the rise thanks to a rebound in tech

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Wall Street ends on the rise thanks to a rebound in tech

The New York Stock Exchange concluded in the green on Monday, driven by a rebound in the tech sector as bond rates eased somewhat.

According to final figures at the close, the Dow Jones index gained 0.32% to 32,731.20 points. The technology-intensive Nasdaq jumped 1.23% to 13,377.54 points. The S&P 500 gained 0.70% to 3,940.59 points.

The rates on 10-year Treasury bills slipped around 1.67%, far from the 1.74% reached in session Friday.

Last week, these bond yields climbed to a 14-month high, worrying the stock market which experienced a week at half mast, weighed down by the tech sector, more sensitive to fears of inflation.

“Rates fell and tech stocks rebounded. This is also due to the expiration of options contracts” which took place on Friday “and which allowed stocks to recover,” said Peter Cardillo, from Spartan Capital Securities.

Seven of the eleven sectors of the S&P 500 finished higher, starting with information technology.

Apple climbed 2.83%, Tesla took 2.31%, while Amazon and Facebook gained more than 1%.

“Falling Treasury yields have relieved pressure on the information technology sector and other growth-related stocks that had recently come under pressure, as the financial sector has lagged behind,” Schwab analysts said. .

Bank stocks as a whole (-1.30%) were weighed down by the ebb in rates and by a Fed announcement on Friday. The central bank decided it would not extend an exemption on capital reserves that helped banks lend during the height of the health crisis.

JPMorgan Chase dropped 2.74%, Goldman Sachs 1.44% and Bank of America 2.21%.

The Kansas City Southern Railway company jumped 10.79%, after announcing on Sunday its marriage to Canadian Pacific Railway for $ 25 billion in cash and stock.

The two networks combined constitute the first rail freight network to join Canada, the United States and Mexico.

The Calgary company’s stock fell 5.81%.

A disappointing indicator, home resales for February, which showed a steeper-than-expected drop (-6.6%), did not however alarm investors. This slowdown in real estate is due in particular to the extreme cold spell which paralyzed activities in part of the country.