Wall Street rallies on tech rebound as FTSE closes in the green
Wall Street closed in the green on Monday as technology stocks rebounded from a recent selloff sparked by surging bond yields.
The tech-heavy Nasdaq index closed up 1.2 per cent, while the S&P 500 and Dow Jones inched up 0.7 per cent and 0.2 per cent respectively.
A sharp run-up in Treasury yields since mid-February has weighed on major technology stocks that benefit from low yields. However, an easing off of 14-month highs in the 10-year US Treasury note’s yield week allowed tech shares to bounce back this week.
Tesla shares jumped 2.3 per cent, proving one of the biggest boosts to the S&P 500 and Nasdaq after Ark Invest, raised its price target to $3,000 per share — or a market capitalisation of just under $3 trillion.
“The technology stocks are pretty beaten down and it’s not shocking to see those rebounding a little bit from their lows,” said Jake Wujastyk, chief market analyst and founding member of TrendSpider.
FTSE
Meanwhile, London’s FTSE 100 ticked ahead this afternoon despite a sell-off in travel stocks triggered by growing concerns that a spike in Covid cases across Europe could tear up summer holiday plans.
The blue chip index closed up 0.3 per cent, or 17.4 points, led by homebuilders and property stocks.
Shares in B&Q owner Kingfisher hiked 3.6 per cent after the company reported a 158 per cent increase in online sales for the year following a DIY boom during lockdown.
Property portal Rightmove and beleaguered vaccine producer Astrazeneca also dominated the list of risers, with a US trial revealing the Cambridge-based firm’s Covid jab is 100 per cent effective against severe disease and hospitalisation.
British Airways owner IAG topped the list of losers on the FTSE 100 with an 8.1 per cent share price plunge, as questions over the certainty of summer holidays abroad this summer rattled investors.
Travel uncertainty
Social care minister Helen Whately warned Britons to wait before booking summer holidays as infection rates rise across Europe.
Her comments sent Jet2 shares sinking 7 per cent, while Tui shares dropped 4.9 per cent.
“It is also going to be messy for any kind of international travel,” said Neil Wilson, chief market analyst at Markets.com.
“After we had a really good run-off in these stocks on the optimism of vaccines and various other reasons, investors are worried that the summer season might be over before it’s even begun.”
Around the world
Asian stocks turned mixed and bonds bounced on Monday as a plunge in the Turkish lira sparked talks that capital controls might be needed to stem the rout.
The dollar was trading almost 12 per cent higher versus the lira, the sharpest move since August 2018 when Turkish markets were in a crisis.
The ripples were more modest elsewhere, with Asia-Pacific shares outside Japan adding 0.3 per cent.
The Hang Seng index fell 0.4 per cent, while the China Enterprises Index gained 0.2 per cent.
Elsewhere, EUROSTOXX 50 eased 0.3 per cent and Nasdaq futures flattened 0.6 per cent.