Stocks closed mixed on Wall Street after a rally in technology companies helped reverse an early slide.
The S&P 500 closed 0.2 per cent higher after being down as much as 0.8 per cent in early trading. It slumped 3.2 per cent a day earlier, hitting its lowest level in more than a year.
Wall Street has rallied in the afternoon after falling early in the session.Credit:Bloomberg
The Dow Jones Industrial Average slipped by 0.3 per cent, while the tech-heavy Nasdaq added 1 per cent. The Australian sharemarket is set to edge higher with futures at 6.15am AEST pointing to a loss of 9 points or 0.1 per cent at the open.
Big technology stocks, which have been swinging sharply both up and down recently, accounted for much of the S&P 500’s turnaround. Apple rose 1.6 per cent and Microsoft rose 1.9 per cent.
Gains in communication and health care stocks also helped lift the market, outweighing declines in financial, real estate and other sectors.
Bond yields were mixed. The yield on the 10-year Treasury fell to 2.98 per cent from 3.08 per cent late Monday.
Treasury yields have been rising and stocks have been extremely volatile recently as Wall Street adjusts to an aggressive turnaround in the Federal Reserve’s policies away from supporting the economy and toward fighting inflation. The central bank is raising interest rates from historic lows to fight persistently rising inflation, which is at its highest levels in four decades.
The central bank has raised its benchmark rate from close to zero, where it sat for much of the coronavirus pandemic. Last week, it indicated it will double the size of future increases.
Higher prices on raw materials, shipping and labor have been cutting into corporate financial results and forecasts. Many companies have been raising prices on everything from clothing to food, raising concerns that consumers will eventually cut spending, which would hurt economic growth.
