U.S. stocks rose Thursday on the back of a rally in the technology sector, while shares of Apple Inc. surged, putting the company on track to reclaim the crown as the largest company by market value.
Gains come a day after the Federal Reserve signaled that it was unlikely to raise interest rates this year amid worries over slowing economic growth.
What are indexes doing?
The Dow Jones Industrial Average
DJIA, +0.89%
rose 247 points, or 1%, to 25,994, while the S&P 500 index
SPX, +1.11%
climbed 32 points, or 1.2%, to 2,856 and the Nasdaq Composite Index
COMP, +1.41%
added 109 points, or 1.4%, to 7,838.
What’s driving the market?
The S&P 500’s information technology sector was providing buoyancy for the broader market, rising more than 2%.
Apple
AAPL, +3.82%
shares were up 4.1% after Needham upgraded the stock to strong buy, paving the way for the iPhone maker to move past Microsoft Corp.
MSFT, +1.99%
in market cap after relinquishing the top spot on Feb. 6. Apple is the fifth most heavily weighted stock on the Dow.
Major benchmarks ended Wednesday mostly lower with bank stocks battered as Treasury yields fell on the Fed’s dovish outlook. Lower rates and a flatter yield curve are seen as a negative for lenders. Some analysts also tied weakness to concerns about the outlook for U.S. economic growth after Fed Chairman Jerome Powell acknowledged worries about global growth.The S&P 500’s financial sector remained under pressure, on Thursday.
The market’s volatility Wednesday was due, in part, to comments by President Donald Trump, who said tariffs on Chinese goods could remain in place “for a substantial period of time” even after a trade deal is reached to promote enforcement of the agreement.
Meanwhile, China’s commerce ministry confirmed Thursday that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29 for more discussion on trade, while Chinese Vice Premier Liu He will travel to Washington early next month to continue the negotiations.
Which economic data are on focus?
The Labor Department said the number of laid-off workers who applied for first-time unemployment benefits fell by 9,000 in the week ended March 16 to 221,000 — a one-month low. Economists surveyed by MarketWatch had forecast claims to total 225,000.
The Philadelphia Fed’s business activity index rebounded in March to a seasonally adjusted reading of 13.7 from -4.1 the previous month. A reading above zero indicates improving conditions. Economists polled by MarketWatch had forecast a reading of 3.
The Conference Board’s leading economic index rose 0.2% in February, its first uptick since September.
What are analysts saying?
“Economists will now debate over the coming months whether this dovish commitment is a policy mistake,’ wrote Edward Moya, market analyst with Oanda. “The Fed’s concern for the economy likely suggests they will be overly cautious reversing course back to a tightening bias even if we see a strong second quarter of data.”
“U.S. data this morning was strong and will like fuel the fire that is questioning the Fed’s dovish commitment,” he added. “Jobless claims came in better than expected and the Philadelphia Fed business outlook rebounded sharply.”
“Powell and the Fed delivered a balanced message to U.S. investors, indicating that the lack of clarity warrants a patient stance,” said John Lynch, chief investment strategist at LPL Research, in a note. “We side with the Fed here in thinking that underlying economic conditions remain solid, with evidence of a slowdown at the beginning of this year from near-term temporary headwinds.”
Which stocks are in focus?
Shares Biogen Inc.
BIIB, -29.74%
slumped 30% after the biotechnology firm said it decided to discontinue late-stage trials of a treatment for Alzheimer’s disease.
Shares of Micron Technology Inc.
MU, +9.86%
soared 9.6%. The memory-chip company reported below-consensus earnings for the fiscal second quarter on Wednesday. The stock has lost nearly 2% of its value over the past six months, but investors have bid up the stock more than 38% year-to-date, in anticipation of a recovery in the chip sector in the second half of 2019.
Shares of jeans-maker Levi Strauss & Co.
LEVI, +32.53%
surged 33% after opening at $22.22 on the New York Stock Exchange, significantly above its initial-public-offering price of $17.
Read: Levi Strauss & Co. IPO: 5 things to know about the iconic jeans company
Darden Restaurants Inc.
DRI, +7.08%
shares climbed 6.9% after the Olive Garden parent company reported fiscal third-quarter profit and sales that beat expectations, and raised its full-year guidance.
Shares of Conagra Brands Inc.
CAG, +12.75%
jumped 13% after the food company reported fiscal third-quarter earnings that beat Wall Street estimates.
Lands’ End Inc.
LE, -7.21%
shares fell 5% after the clothing retailer reported a 59% decline in profits for its most recent quarter.
How are other markets trading?
Asian stocks closed mostly higher, with Japan’s Nikkei 225 adding 0.2% and China’s Shanghai Composite Index rising 0.4%. Hong Kong’s Hang Seng Index, however, fell 0.9%.
European markets were pressured, with the Stoxx Europe 600 edging lower.
Crude-oil prices
CLK9, -0.61%
retreated while the price of gold
GCJ9, +0.54%
settled higher, and the U.S. dollar
DXY, +0.57%
rallied against other currencies.
—William Watts contributed to this article
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.
Source : MTV
