U.S. main stock indexes rose on Monday as investors piled into beaten-down megacap growth stocks with a decline in Treasury yields boosting sentiment, while Meta Platforms gained on reports the Facebook parent was planning fresh layoffs.
Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O), Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O) added between 0.1% and 3.6%, pushing the Russell 1000 growth sector (.RLG) up by 1.4%
Driving gains in the megacap names were declining yields on the U.S. 10-year Treasury note , with Microsoft also boosted by a price target raise by Stifel, which said the tech-giant is clearly looking to upend Alphabet’s Google Search dominance through its integration with ChatGPT.
A fall in Treasury note yields indicate traders expect a greater return from investments in risky assets.
“Tech type stocks are more sensitive to higher bond yields and higher rates because their earnings are discounted into the future,” said Brian Klimke, investment director at Cetera Investment Management LLC.
This report’s information was first seen on REUTERS; to read more, click this link.
