S&P 500 Rides Tech Rally as Easing Inflation Pushes U.S. Yields Lower By Investing.com


© Reuters

By Yasin Ebrahim

Investing.com — The S&P 500 jumped Wednesday, led by tech on falling U.S. Treasury yields as data pointing to signs that inflation may be nearing a peak eased fears that the Federal Reserve will have to continue with aggressive rate hikes.

The rose 1.9%, the gained 1.5%, or 481 points, the was up 2.6%.

The U.S. , a measure of inflation, was flat in June compared with expectations for a 0.2% rise. In the 12 months through July, headline inflation eased to 8.5% from 9.1% in June but was still the highest since 1981.

The data suggested that inflation has “passed its peak,” Commerzbank said, as the “collapse in the price of gasoline played a decisive role.”

U.S. Treasury yields slumped as investors bet on a less hawkish Fed, with the , which is sensitive to fed rate hikes, slipping more than 2%.

Tech stocks, which have had a rocky start to the week following pressure from falling chip stocks this week, were aided by falling Treasury yields, which make valuations on growth stocks like tech more attractive.

Google-parent Alphabet (NASDAQ:), and Meta (NASDAQ:), led the gains for big tech, while Apple (NASDAQ:), and Microsoft (NASDAQ:) were up more than 2% each.

Twitter (NYSE:), meanwhile, gained more than 2% on bets that the social media giant may win its legal battle with Tesla (NASDAQ:) chief executive Elon Musk to force the billionaire to complete his $44 billion deal to buy the company.

The Tesla CEO sold nearly $7 billion in Tesla shares over the past few days, to “avoid an emergency sale of Tesla stock” should Twitter force the deal to close, Musk said.

“[T]he chances of a Twitter deal now more likely,” Wedbush analyst Daniel Ives said, and raised the price target on Twitter to $50 from $30. reflecting the “higher chances the deal now ultimately closes.”

Financials, mostly banks, were also in ascendency as the Treasury yield curve steepened, though remained inverted pointing to ongoing fears of a recession, albeit a milder downturn somewhat, following the latest inflation data and last week.

The 2-year Treasury yield over 10-year yield 40 basis points following a dip to lower than negative 50 basis intraday.

Signature Bank (NASDAQ:), Synchrony Financial (NYSE:), and SVB Financial Group (NASDAQ:) were among the biggest gainers, with the latter up more than 9%.

Energy stocks lagged the broader market move higher as oil prices pared some early-day gains after data showing jumped by a more-than-expected 5.5 million barrels last week.

In earnings news, Coinbase Global (NASDAQ:) climbed 7% as the crypto exchange operator’s wider-than-expected was overshadowed by a jump in .

Leave a Comment

Leading the way

Let's build a better world together

Project planning
Design expertise
Great qualifications

Nullam vestibulum finibus sapien, id consequat mauris tempus auctor.


90 Newport St., Natick, MA 01760

83 Taylor Street, Kings Mountain, NC 28086

22 Birch Hill St., Villa Rica, GA 30180

Support requests


Nullam scelerisque leo felis, quis congue mauris tristique in. Suspendisse pulvinar, felis eu facilisis mattis, turpis odio luctus nisi, et ultrices velit enim quis lacus.

Request a quote

[Insert your contact form here]


Vivamus vehicula dictum elit at bibendum. Etiam finibus eros ut urna auctor ullamcorper. Sed at erat eget nisl rutrum ultrices sed eu ex.


Sign up to receive the latest news and trends from our company.

More questions? Get in touch