Nasdaq climbs: tech stocks lead equity gains

by Finploris
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Technology stocks gain on Monday amid a dip in Treasury yields. The S&P 500 rises and the Nasdaq 100 climbes about 1% as the 10-year U.S. Treasury yield retreated from the highest levels in 14 months, falling 3 basis points to 1.70%. Despite last week’s declines in the equity market, the S&P 500 and the Nasdaq 100 are still near record highs.

Higher interest rates in recent weeks have raised concerns about valuations on tech and growth equities. Investors have been sought growth in the thematic exposure of investing themes like digitalization or clean energy. The earnings potential caused share prices of growth stocks to rise sharply.

However, the Treasury sell-off last week elucidated investors’ concerns that a powerful economic recovery could drive inflation. The recent rise in bond yields and the impact on equity markets are in contrast to the economic growth and the raising corporate profits as vaccines are rolling out around the world. Last week the U.S. Federal Reserve and the Bank of England signaled that they do not intend to tighten their monetary policy because of inflation.

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