ECONOMIC SILUET: S&P 500 hits fresh record | 10-year Treasury slides

Rabu, 07 Juli 2021

S&P 500 hits fresh record | 10-year Treasury slides | China’s crackdown on U.S.-traded stocks

WED, JUL 07, 2021

EVENING BRIEF

AS OF WED, JUL 07, 2021 • 05:12 ET

DJIA		34681.79
		+0.30%	+104.42

S&P 500		4358.13
		+0.34%	+14.59

NASDAQ		14665.06
		+0.01%	+1.42

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	144.57	+2.55	+1.80%
MSFT	279.93	+2.27	+0.82%
CSCO	53.26	+0.28	+0.53%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	144.57	+2.55	+1.80%
F	14.23	-0.27	-1.86%
GE	12.98	+0.06	+0.46%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	144.57	+2.55	+1.80%
AMD	90.54	-3.93	-4.16%
MSFT	279.93	+2.27	+0.82%

EDITOR'S NOTE

U.S. stocks posted a positive session on Wednesday as Big Tech names like Apple and Microsoft carried both the S&P 500 and the Nasdaq Composite to new all-time highs.

The S&P 500 finished the day up 0.3% at 4,358.13 – a record close. Meanwhile the Dow Jones Industrial Average added 104.42 points to reach 34,681.79. The Nasdaq Composite eked its way to a record close, up 0.01% to end the session at 14,665.06.

The outperformance of popular internet and technology stocks on Wednesday added to a month-long rotation back into companies that prioritize growth instead of the reopening names in the energy and retail sectors that proved popular in the first half of the year.

Apple, Microsoft and Amazon — up 1.8%, 0.8% and 0.5%, respectively, on Wednesday — are each up by double-digits over the last month. While traders have cited several reasons for the shift back into Big Tech, most mention a marked decline in bond yields when discussing the move.

The downshift in the benchmark 10-year Treasury note yield continued Wednesday, when the rate fell below 1.3% to its lowest level since February. Higher yields reduce the value of future earnings relative to current earnings, meaning that appetite for growth stocks tends to rise when rates fall.

The Federal Reserve made headlines Wednesday afternoon, when it released a summary of its June policymaking meeting. The Federal Open Market Committee's meeting minutes showed that central bank officials had begun to discuss tapering its massive amount of monthly bond purchases.

Officials noted that the economic recovery was well underway and has been accompanied by inflation. However, the prevailing mindset was that there should be no rush to take the Fed's foot off the policy pedal and that markets should be well prepared ahead of any shift in policy.