Stock market today
Another mixed close today for the US stock market. S&P 500 closed flat, and Nasdaq fell for a second consecutive day. The closing numbers for the US stock market today are:
S&P 500: 4,167.59,+2.93(+0.07%)
Dow 30: 34,230.34,+97.31(+0.29%)
Russell 2000: 2,241.37,-6.92(-0.31%)
Stock market news
“Stocks rose after a technology-led selloff a day earlier, with growth stocks recovering some losses spurred after a key policymaker suggested interest rates might need to rise to prevent an economic overheating.
The Dow added more than 150 points, or 0.5%, to reach an all-time intraday high. The Nasdaq gained 0.6% intraday on Wednesday, after the index fell 1.9% during Tuesday’s regular session for its worst day since March. The S&P 500 added 0.5%.
The sharp move lower in growth stocks a day earlier came after Treasury Secretary Janet Yellen suggested Tuesday that interest rates might need to rise to stave off an overheating in the economy, with economic activity picking back up much faster than expected as vaccinations take place and social distancing standards get eased. She added in later remarks, however, that a near-term interest rate hike was not something she was “predicting or recommending,” as that decision lies with the Federal Reserve.
Still, some companies have also said that surging demand and supply chain shortages have pushed prices higher, hinting at signs of overheating that have worried some market participants. Mentions of inflation on first-quarter earnings calls have surged by 800% year-over-year, according to Bank of America strategist Savita Subramanian.
“I think to some extent the market is now taking a bit of a pause thinking that some of the best news may be behind us at this point on stocks, including the growth stocks, especially as we look to more reopenings,” Rob Haworth, U.S. Bank Wealth Management senior investment strategist. “I think it’s two-fold: One, a great earnings season that people wonder if it will be repeated, and two, looking more to that reopening story.”
Plus, with stocks having reached record highs last week, equities were vulnerable to a pull-back at the slightest trigger, many strategists noted. And as first-quarter earnings season winds down, investors will be left to contemplate the future policy landscape, which may be somewhat less constructive for corporate profits.”