S&P 500 closes higher in late session U-turn

By Stephen Culp NEW YORK (Reuters) - Wall Street reversed its losses late Tuesday, with the S&P 500 and the Dow reclaiming positive territory by the close in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy. The Nasdaq was the only major U.S.

Reuters February 24, 2021 03:05:22 IST
S&P 500 closes higher in late session U-turn

SP 500 closes higher in late session Uturn

By Stephen Culp

NEW YORK (Reuters) - Wall Street reversed its losses late Tuesday, with the S&P 500 and the Dow reclaiming positive territory by the close in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy.

The Nasdaq was the only major U.S. stock index to lose ground on the day.

Market-leading growth stocks, which thrived amid pandemic-related lockdowns, weighed on stocks for much of the day as investors favored shares that stand to gain most as ongoing vaccine deployment allows economic restrictions to be lifted.

"People are buying the dip, a move that's been rewarded for months in a one-sided market," said Dennis Dick, head of market structure and a proprietary trader at Bright Trading LLC.

"It's tough to be a bear, it's really tough. The only fear out there is the fear of missing out,” Dick said.

Fed Chairman Jerome Powell pushed back against concerns that the central bank's economic support increased the risk of spiraling inflation, and insisted that the central bank's accommodative monetary policy would remain in place for "some time."

Testifying before the Senate Banking Committee, Powell said the economic recovery was "uneven and far from complete," adding that investors are mostly responding to an anticipated rebound as vaccine deployment curbs the pandemic.

"Powell's primary objective appears to clearly be to support economic growth, even at the potential expense of higher inflation," said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

Unofficially, the Dow Jones Industrial Average rose 13.75 points, or 0.04%, to 31,535.44, the S&P 500 gained 4.85 points, or 0.13%, to 3,881.35 and the Nasdaq Composite dropped 67.85 points, or 0.5%, to 13,465.20.

Tesla Inc dropped due to falling bitcoin . The electric car maker recently invested $1.5 billion in the cryptocurrency.

Cryptocurrency miners Riot Blockchain Inc and Marathon Patent Group Inc plunged, as did bitcoin bank Silvergate Capital Corp.

Home improvement retailer Home Depot Inc posted better-than-expected quarterly earnings. But it cast doubt on whether spiking sales, driven by homebound consumers taking on do-it-yourself projects amid COVID lockdowns, are sustainable going forward. The stock fell, and was among the heaviest drags on the Dow.

Smaller rival Lowe's Companies Inc, expected to report its results early Wednesday, also lost ground.

(Reporting by Stephen Culp; Additional reporting by Herbert Lash; Editing by Cynthia Osterman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.