US Stock Market Closed Higher

Dow hit a record high, financial stocks hit a record high

Tesla rose as Ark Invest bought the company’s shares worth $171 million

GameStop surged in late trading for unknown reasons

February 24-US Wall Street stocks closed higher on Wednesday, the sell-off of technology-related stocks eased, and after the Federal Reserve (Fed) Chairman Powell’s speech quelled people’s concerns about inflation, investors continued Rotate funds to cyclical stocks.

The Nasdaq index closed higher. It fell 1.3% earlier, but regained its footing in the afternoon. The Dow Jones Industrial Average hit a record high earlier in the session.

GameStop rose sharply in late trading, and in the absence of obvious catalysts, the trading volume was more than twice the average daily trading volume of the past 10 full trading days. The stock is the protagonist of the retail trading frenzy triggered by the Reddit forum at the end of January.

Powell told lawmakers on Wednesday that it may take more than three years for inflation to reach the Fed’s target. This is a sign that the Fed will tolerate any price increase after the epidemic and keep interest rates unchanged for a long time to come.

Richard Sperstein, chief investment officer of Treasury Partners, said: “What drives the stock market is fiscal stimulus, the Fed’s dovish stance, the strong earnings reports we have seen from companies, and the fact that a third vaccine will be approved.”

U.S. Food and Drug Administration (FDA) staff said in a document released on Wednesday that Johnson & Johnson’s new crown vaccine appeared to be safe and effective in trials, paving the way for its emergency use.

After the news, shares of Johnson & Johnson rose 1.3%.

The Dow Jones Industrial Average rose 424.51 points, or 1.35%, to 31,961.86 points; the S&P 500 Index rose 44.06 points, or 1.14%, to 3,925.43 points; the Nasdaq Index rose 132.77 points, or 0.99%, to 13,597.97 points.

The three major stock indexes are expected to record strong monthly gains, and the Dow and S&P 500 will record their best monthly performance since November last year.

Investors have been concerned about rising U.S. Treasury yields and its potential impact on growth stocks. Saperstein said that rising yields may put pressure on the stock market, but will not disrupt the upward trend.

Value stocks rebounded slightly recently, with the S&P 500 Value Stock Index rising for the fourth consecutive day.

The S&P 500 financial sector hit a record high, and other cyclical sectors including industrial stocks, energy stocks and materials stocks also rose.

The S&P 500 Growth Index, which includes most of the technology-related stocks that have soared before, has been under pressure in the past few days, suffering from valuation concerns, rising U.S. Treasury yields, and shifting investment to more economically sensitive sectors.

Microsoft, Amazon and Apple fell between 0.4-1.1%. Facebook, Netflix and Alphabet regained their earlier losses.

Growth stocks are particularly sensitive to rising yields, because their valuation depends to a large extent on future earnings. When bond yields rise, future earnings will be discounted even more.

Tesla rose 6.2% after the star investor Cathie Wood’s Ark Invest Fund purchased a further US$171 million worth of shares after Tesla’s stock price fell sharply.

Lowe’s slipped 3.7%, and the company still predicts that 2021 revenue is expected to fall by US$4 billion to US$8 billion, even if its fourth-quarter performance increases sharply.

The ratio of rise and fall stocks on the New York Stock Exchange was 2.1:1, and the ratio of rise and fall stocks on the Nasdaq market was 2.62:1.

102 S&P 500 index stocks hit 52-week highs, and no constituent stocks hit new lows; 282 Nasdaq index stocks hit new highs, and seven hit new lows.