On Monday, all three key indices of Wall Street had wrapped up the session modestly higher with tech-stocks bouncing back from a recent sell-off trend triggered by an upsurge in US Treasury bond yields, while Tesla Inc. shares led the rallies in S&P 500 after Ark Invest, an influential investor in the e-vehicle manufacturer, had told that Tesla Inc shares could hit $3,000 by 2025.
Aside from a tech-boost led by Tesla Inc., other growth stocks gained more than 1 per cent as cyclicals and defensives seemingly have treaded water following a decent reversal in investors’ portfolios, who had previously been betting heavily on the stocks which could be benefitted by the most following a re-opening of the economy.
On top of that, in the day’s well-attired rally in the Wall Street was mostly prompted by an ease-off of US Treasury bond yields that had spiked to a nearly 14-month peak last week, which in effect had allowed rooms for the so-called growth stocks to rebound.
Wall Street edges higher as growth stocks rebound, Tesla rallies
With Tesla Inc. stocks contributing the biggest boost in Nasdaq and S&P 500 followed by a bullish remark from Ark Invest as beforementioned, benchmark S&P 500 surged 0.70 per cent to 3,940.56 and trade-sensitive Dow added 0.31 per cent to 32,730.35, while leading the tally of the gains, tech-heavy Nasdaq jumped as much as 1.23 per cent to wind down the day at 13,377.54.
Meanwhile, referring to a likely cat-and-mouse between growth stocks and cyclicals in a longer-term outlook, a Chairman of hedge fund Great Hill Capital LLC in New York, Tom Hayes said, “It’s going to look like tech and growth is back but I think it will be much more moderate than people think.
There’s a plethora of growth, growth across many sectors, and we’ve seen managers bidding those (shares) up in cyclicals and value. I think that persists over the next 18 months. ”