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Dow Ends Higher as Wild Tech Swings Continue -Breaking

by Mike Robinson

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© Reuters

By Yasin Ebrahim

Investing.com – The Dow ended higher Monday, as wild swings continued in technology stocks amid an ongoing rise in Treasury yields ahead of a widely expected Federal Reserve interest rate hike later this week.

The rose 0.6% and the gained 0.26% respectively, which is 84 points.

Tech stocks swung between positive and negative intraday as the  briefly breached 3% for first time since 2008, but dip-buyers emerged late on to help push growth stocks and the broader market higher. Just a day before the Fed’s two days meeting, Treasury yields rose.  

“We see the FOMC on course to deliver its second rate hike of the cycle – a 50bp hike – at its May meeting, while also announcing its plan to begin reducing the size of its balance sheet starting in June,” Morgan Stanley said in a note.

Gains from Microsoft (NASDAQ:), Alphabet (NASDAQ:) and Meta (NASDAQ:) led the rebound in tech, while Amazon  (NASDAQ:) and Apple (NASDAQ:) cut losses to end the day in the green. 

Communications services also enjoyed a rise in popularity, thanks to gains at Warner Bros Discovery and Paramount (NASDAQ) as well Activision Blizzard’s (NASDAQ). 

Activision Blizzard (NASDAQ 🙂 rose more than 3% following Warren Buffett’s statement that Berkshire Hathaway NYSE: now owns a 9.5% interest in the videogame giant.

Investor sentiment regarding stocks was not supported by quarterly corporate results.   

 

Global Payments (NYSE:) dropped more than 8 percent despite reporting an improvement in the top and bottom line and guidance for full year that was consistent with Wall Street expectations.

 

Moodys (NYSE:), down nearly 5%, after credit ratings company trimmed its full-year earnings guidance on jitters that market volatility is set to continue. 

 

U.S. economic activity in April fell to its lowest level since September 2020. This was due to further supply chain issues following the recent China lockdown.

“Supplier delivery times are lengthening again, probably in response to China lockdowns,” Jefferies said in a note.

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