By Yasin Ebrahim
Investing.com — The Dow snapped a three-week losing streak as technology sidestepped the ongoing chorus of hawkish Federal Reserve remarks that have pushed up the odds of a larger September rate hike and extended the melt-up in Treasury yields.
The rose 1.5%, the gained 1.2%, or 377 points, the was up 2.1%.
Big tech and chip stocks combined to help push the broader tech sector more than 2% higher even as the latest remarks from Fed officials continued the trend of rising treasury yields, which is typically a drag on tech.
Federal Reserve Governor Christopher Waller called for “another significant increase in the policy rate,” later this month.
The remarks arrived just a day after chairman Jerome Powell vowed to persist with rate hikes “until the job is done.”
The hawkish wave of remarks from Fed officials this week has pushed the odds of a 75-basis point rate hike to 91% from 57% the prior week, according to Investing.com’s
Fed Rate Monitor Tool
Energy also played a big role in the broader market melt-up helped by advancing following recent reports suggesting the Biden administration is mulling whether to stop releasing oil from the U.S. Strategic Petroleum Reserve after October.
Halliburton Company (NYSE:), EOG Resources Inc (NYSE:), and Baker Hughes Co (NASDAQ:) led the gains in energy, with the latter up more than 5%.
The earnings front also provided ammunition for bullish bets on stocks as Docusign and Zscaler surged.
Zscaler (NASDAQ:) reported that topped Wall Street estimates on both the top and bottom lines, sending its shares up more than 21%.
DocuSign (NASDAQ:), meanwhile, delivered a better-than-expected Q3 outlook after reporting that were ahead of estimates.
In other news, construction equipment maker Caterpillar (NYSE:) said it had reached a settlement to resolve a multiyear tax dispute with the Internal Revenue Service.
Leave a Reply