Traders on the floor of the NYSE, Aug. 15, 2023.
Source: NYSE
The Nasdaq Composite jumped Monday, led by tech shares, even as rates reached levels not seen in over a decade.
The tech-heavy index gained 1.3%, on pace for its biggest one-day advance since July 28, when it rallied 1.9%. It was also on track to snap a four-day losing streak. The S&P 500 gained 0.4%, while the Dow Jones Industrial Average slid 92 points, or 0.3%.
Palo Alto Networks rallied 15% on stronger-than-expected earnings, and Nvidia popped 6% ahead of its earnings report due Wednesday. Tesla and Meta climbed 6% and 2%, respectively. The S&P 500 tech sector popped 1.8%.
Those moves came even as the benchmark 10-year Treasury note yield hit a high of 4.34%. That’s its highest level since November 2007.
“I think the path of least resistance is the momentum that you’ve seen coming into this week,” said Jeff Schulze, head of economic and market strategy at ClearBridge Investments. “The 10-year Treasury continues to rise here, and although you did see positive impulse for markets and in particular cyclicals, I think, ultimately, the 10-year Treasury is going to weigh on valuations and put more downward pressure on the markets as the week develops.”
Monday’s moves come after weekly declines on Wall Street, which added to the market’s late-summer slump. The S&P 500 and Nasdaq each fell for a third straight week, while the Dow had its biggest weekly decline since March.
This week, investors are anticipating an address Friday morning from Federal Reserve Chair Jerome Powell at the central bank’s annual symposium at Jackson Hole, Wyoming.
