Wall Street closed higher in choppy trading ahead of Fed meeting

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 14, 2022. REUTERS/Brendan McDermid

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  • Spirit Airlines backs down as board rejects JetBlue takeover offer
  • The 10-year US Treasury yield hit 3% for the first time since 2018

(Reuters) – Wall Street’s main indexes swung throughout the session to close higher on Monday, as investors sought to pick the tech names that have been battered in the final days ahead of this week’s Federal Reserve meeting.

A meeting of US central bank policy makers is widely expected to raise interest rates by half a percentage point, with this week’s move expected to start a period of sharp rate increases to counter inflation.

The tension heading into the meeting was reflected in a volatile session of US stocks. During the day, the S&P 500 fell to its lowest level since May 2021, and the Nasdaq touched a level last seen in November 2020.

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It was also seen in the US Treasury bond market, where the 10-year benchmark crossed 3% for the first time in more than three years.

In addition to preparing for an expected interest rate hike, traders were also looking to launch “quantitative tightening,” as the central bank cuts its balance sheet after buying bonds to support the economy during the pandemic. Read more

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High-growth stocks, such as technology companies, have been hit hard this year as traders adapt to this environment, with losses increasing in recent days due to a number of disappointing earnings reports from giant companies.

However, Facebook Meta Platforms Inc (FB.O) jumped after falling 9.8% last month, while Microsoft Corp. (MSFT.O) And Nvidia Inc (NVDA.O) Gains after sharp declines in April.

Amazon.com Inc (AMZN.O) It fell on Monday, adding to a 14% drop on Friday after a bleak quarterly report.

Apple company (AAPL.O) It fell as the iPhone maker faced a potentially heavy fine after EU antitrust regulators charged it with restricting competitors’ access to its technology used in mobile wallets. Read more

It’s a waiting game. Let’s see what the Fed says, what the inflation data looks like later next week and we have a lot of earnings (reports) this week,” said Dennis Dick, a trader at Bright Trading LLC.

“It’s been a tough market and sentiment has reached a point where a lot of people have rejected this market. I’m not saying the bottom is inside, but maybe it’s time to dump that money and get some of that money back into action.”

According to preliminary data, the S&P 500 . index (.SPX) It rose 23.88 points, or 0.58%, to close at 4,155.60 points, while the Nasdaq Composite Index (nineteenth) It rose 200.48 points, or 1.63%, to 12,535.12 points. Dow Jones Industrial Average (.DJI) It rose 89.70 points, or 0.27%, to 33,066.91 points.

Central 11 sectors Standard & Poor’s, the real estate index (.SPLRCR) It was the biggest loser.

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Pfizer Inc (PFE.N) It fell after a large trial found that oral antiviral treatment for COVID-19 was not effective in preventing coronavirus infection in people who live with someone who has the virus. Read more

Activision Blizzard (ATVI.O) jumped after Warren Buffett said Berkshire Hathaway Inc (BRKa.N) It acquired a 9.5% stake in the “Call of Duty” game maker. Read more

Spirit Airlines (Save. N) Declined after the low-cost airline rejected JetBlue Airways Corp (JBLU.O) A takeover bid of $33 a share, saying it has little prospect of gaining approval from government regulators. Read more

By comparison, JetBlue stock finished higher, regaining ground it lost during a period of midday volatility that wiped out initial gains.

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(Covering) By David French in New York and Devik Jain in Bengaluru Editing by Shonak Dasgupta and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.

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