(Reuters) – Wall Street’s main indexes gained for the first time in three sessions on Tuesday, as Apple and chipmakers boosted technology shares, while energy companies rose on the back of higher crude oil prices.
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., March 26, 2019. REUTERS/Lucas Jackson
Supporting sentiment was stabilizing yields, with the benchmark 10-year Treasury yields rising off 15-month lows and a closely watched part of the yield curve less inverted. [US/]
Markets slid on Friday, when the U.S. Treasury yield curve inverted for the first time since 2007 and added to worries of a global economic slowdown.
“The market still has no idea what the evolution of growth is going to be and we are getting these reactionary days like last week and bounce backs like today,” said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
“People are dealing with the yield curve inversion and weak economic data. There is no specific theme for today.”
The high-growth tech sector, up 1.25 percent, was supported by Apple Inc and chipmakers, with the Philadelphia Chip index rising 1.55 percent.
Apple Inc rose 1.83 percent, a day after the iPhone maker unveiled its video streaming service, a credit card and an online gaming arcade.
All 11 major S&P sectors were trading higher, led by energy’s 1.87 percent gain.
Oil prices were supported by OPEC supply cuts and expectations of lower U.S. inventories. [O/R]
Financials were up 0.86 percent and the sector was set to snap a five-day losing streak, with the S&P banking sector gaining 0.90 percent.
At 11:03 a.m. ET, the Dow Jones Industrial Average was up 260.97 points, or 1.02 percent, at 25,777.80. The S&P 500 was up 29.45 points, or 1.05 percent, at 2,827.81 and the Nasdaq Composite was up 88.82 points, or 1.16 percent, at 7,726.36.
Investors also tracked U.S.-China trade talks, with U.S. officials traveling to Beijing for a new round of high-level negotiations, scheduled to start on Thursday.
Markets looked past weak consumer confidence numbers for March, as well as housing data that showed U.S. homebuilding fell more than expected in February.
Nvidia Corp rose over 3 percent after brokerage Piper Jaffray initiated coverage on the chip designer with an “overweight” rating.
Viacom Inc jumped 6.02 percent after the New York Post reported the company and CBS Corp were rekindling merger talks.
Carnival Corp tumbled 7.89 percent, the most on the S&P, after the world’s largest cruise operator cut its annual profit forecast.
Advancing issues outnumbered decliners by a 4.39-to-1 ratio on the NYSE and by a 3.20-to-1 ratio on the Nasdaq.
The S&P index recorded 32 new 52-week highs and one new low, while the Nasdaq recorded 30 new highs and 19 new lows.
Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila