The main indices of wall street fluctuated during the session and closed higher on Monday, as investors demanded tech stocks that had been hammered in the last days before the meeting of the Federal Reserve (fed) This week.
The US central bank is expected to raise interest rates by half a percentage point and begin a period of aggressive rate hikes to counter inflation.
The nervousness before the meeting was reflected in a session of high volatility in US equities. On the day, the S&P 500 fell to its lowest level since May 2021, and the nasdaq touched a level last seen in November 2020.
At the close of Monday’s session, the S&P 500 gained 23.88 points, or 0.58%, to 4,155.60 units, while the nasdaq advanced 200.48 points, or 1.63%, to 12,535.12. The Dow Jones Industrial Average it rose 89.70 points, or 0.27%, to 33,066.91 units.
The tension was also felt in the bond market of the american treasurywhere the benchmark 10-year paper topped 3% for the first time in more than three years.
In addition to positioning themselves for the expected rate hike, traders were also watching for the “quantitative tightening” to kick in, in which the fed reduces its balance after buying bonds to support the economy during the pandemic.
High-growth stocks such as technology companies have been hit this year as traders adjust to this environment, with losses accentuated in recent days by a series of disappointing earnings reports from large companies.
However, the matrix Facebook, Meta Platforms Inc. rose after falling 9.8% last month, while Microsoft Corporation Y Nvidia Corp. advanced after a losing April.
Amazon Inc. it fell on Monday, adding to a 14% drop on Friday after submitting a dismal quarterly earnings report.
Apple Inc. relented as the iPhone maker faces a possible fine after EU antitrust regulators accused it of restricting rivals’ access to its technology used for mobile wallets.
“It’s a game of nerves. We’re going to see what the Fed says, what the inflation data is next week and we’ve got a lot of earnings (reports) this week,” said Dennis Dick, a trader at Bright Trading LLC.
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