By Yasin Ebrahim
Investing.com – The Dow ended higher Monday, as wild swings continued in technology stocks amid an ongoing rise in Treasury yields ahead of a widely expected Federal Reserve interest rate hike later this week.
The Dow Jones Industrial Average gained 0.26%, or 84 points, the S&P 500 rose 0.6%, and the Nasdaq rose 1.6%
Tech stocks swung between positive and negative intraday as the 10-year Treasury yield briefly breached 3% for first time since 2008, but dip-buyers emerged late on to help push growth stocks and the broader market higher. The climb in Treasury yields comes just a day ahead of the Fed’s two-day meeting.
“We see the FOMC on course to deliver its second rate hike of the cycle – a 50bp hike – at its May meeting, while also announcing its plan to begin reducing the size of its balance sheet starting in June,” Morgan Stanley said in a note.
Gains from Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Meta (NASDAQ:FB) led the rebound in tech, while Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) cut losses to end the day in the green.
Communication services were also in the ascendency, underpinned by gains in the Warner Bros Discovery (NASDAQ:WBD), Paramount (NASDAQ:PARA), and Activision Blizzard (NASDAQ:ATVI).
Activision Blizzard (NASDAQ:ATVI) was up more than 3% after famed-investor Warren Buffett said that Berkshire Hathaway (NYSE:BRKa) now owned a 9.5% stake in the video game giant.
Quarterly results from corporates, meanwhile, did little to support investor sentiment on stocks.
Global Payments (NYSE:GPN) fell more than 8% despite reporting a beat on both the top and bottom lines and full-year guidance that met Wall Street expectations. Moodys (NYSE:MCO), down nearly 5%, after credit ratings company trimmed its full-year earnings guidance on jitters that market volatility is set to continue. On the economic front, U.S. manufacturing activity in April slowed to its lowest reading since September 2020, pressured by further supply chain woes following recent lockdowns in China.
“Supplier delivery times are lengthening again, probably in response to China lockdowns,” Jefferies said in a note.