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On Monday, all three key indices of Wall St. had rallied, largely bolstered by a mass-scale bounce in tech-sectors, as prospects of a less-hawkish Fed monetary policy emerges following a cascade of dismal economic data. Apart from that, following Friday’s torrential high-tide in tech-stocks after Netflix earnings’ report had beaten analysts’ forecast, investors appeared to have begun the week in an upbeat note, while possibilities of a less-hawkish Fed had fuelled up the tech-rally further.
Besides, Google-parent Alphabet had surged last week following announcement that it would trim as many as 12,000 jobs. In the matter of the fact, a less-hawkish Fed is a key catalyst for growth stocks such as tech-sector, as a lower interest rate coupled with an easing in monetary policy, usually help growth stocks feather up.
Nonetheless, in the day’s gain in the Wall St. was mostly prompted by a sharp shoot-up in semiconductor shares as Philadelphia Semiconductor Index had reported steep gains after Barclays had upgraded the sector’s rating to “Overweight” from a prior “Equal weight”.
Wall St. climbs as tech-stocks surge
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.76 per cent to 33,627.85 and Wall St. bellwether S&P 500 surged 1.18 per cent to 4,019.36, while tech-heavy Nasdaq snowballed as much as 2.0 per cent to 11,363.77.
Meanwhile, addressing to the day’s gains in semiconductor index, President of Chase Investment Counsel in Charlottesville, Virginia, Peter Tuz said, “(Chips are) a group that's been depressed, so I’m not too surprised.
We're going to see earnings from these companies over the next couple of weeks and that will be where the rubber meets the road”.