US Stocks Continue to Rise with Tech Leading the Way - Business News, Finance News, Share Market News - Market trendz

Post Top Ad

Friday, 31 March 2023

US Stocks Continue to Rise with Tech Leading the Way

 US Stocks Continue to Rise with Tech Leading the Way

US Stocks Continue to Rise with Tech Leading the Way


On Thursday, March 30th, the US stock market continued its upward trend, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all posting gains. The technology-related shares of the S&P 500 were up 1.1%, giving the index its biggest boost, while the Philadelphia semiconductor index hit its highest level in nearly a year.


Technology Sector Growth


The growth in the technology sector has been fueled by optimism that the downturn in chip sales has ended. The technology sector has seen an increase of approximately 20% in the first quarter, contributing to sector gains and communication services, which have grown around 18%. This has resulted in Nasdaq is on track for its most substantial quarterly gain in percentage since the end of 2020.


Banking Sector Decline


While the technology sector experienced growth, regional US bank shares fell due to the Biden administration proposing stronger measures to reduce risk without going to Congress. The KBW regional bank index ended down 2%, and the S&P 500 financial index fell 0.3%, the only S&P 500 sector in negative territory on the day. The banking turmoil began earlier this month with the collapse of two regional US lenders, sparking concerns about a broader financial crisis.


Investor Expectations and Reports


Investors are also awaiting the February reading of the personal consumption expenditures (PCE) price index, due Friday after January figures showed a sharp acceleration in consumer spending. Three Federal Reserve officials kept the door open on Thursday to more rate rises aimed at lowering inflation. Two noted that banking sector problems could generate enough headwinds on the economy. Fed funds futures traders are now pricing in a 55% chance of a 25-basis-point rate increase at the Fed's May 2-3 meeting.


Commerce Department Report


In another report, the Commerce Department confirmed the economy grew at a solid clip in the fourth quarter, but much of the increase in output came from inventory accumulation.


Stock Market Activity


US-listed shares of Alibaba Group Holding climbed 3.5% on a report that its logistics arm had started preparations with banks for its Hong Kong initial public offering. In comparison, those of JD.Com jumped 7.8% on plans to spin off its real estate infrastructure arm. Faraday Future Intelligent Electric Inc rose after the company said it had started production of its first luxury electric car after a months-long delay. 


Still, the stock ended the day down slightly. Advancing issues outnumbered decliners on the NYSE by a 2.70-to-1 ratio, and on Nasdaq, a 1.18-to-1 ratio favored advancers. The S&P 500 posted eight new 52-week highs and no new lows, while the Nasdaq Composite recorded 63 new highs and 151 new lows. Volume on US exchanges was 10.36 billion shares, compared with the 12.68 billion average for the full session over the last 20 trading days.


Post Bottom Ad