Stock market today: Wall Street holds firmer after three-week slide as Big Tech stocks rebound

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NEW YORK (AP) — Wall Street closed mixed, holding a bit firmer following its three-week losing streak. The S&P 500 rose 0.7% Monday as gains for Tesla, Microsoft and other Big Tech stocks lifted the index.

NEW YORK — Wall Street closed mixed, holding a bit firmer following its three-week losing streak. The S&P 500 rose 0.7% Monday as gains for Tesla, Microsoft and other Big Tech stocks lifted the index. That’s even though the majority of stocks fell. The Dow fell 36 points, and the Nasdaq composite rose 1.6%. In the bond market, the 10-year Treasury yield touched its highest level since 2007. The week’s main event is likely to be a Friday speech by Federal Reserve Chair Jerome Powell.

It was a return to form for Tesla and other market behemoths, which have struggled recently under the weight of rising yields in the bond market. The yield on the 10-year Treasury rose again Monday, touching its highest level since 2007 after briefly climbing above 4.34%. That's up from 4.25% late Friday and from less than 0.60% in 2020.

The worry is that Powell will dash investors’ hopes that the Fed has already hiked interest rates for the final time and that its next move will be to cut rates early next year. In the minutes from its last policy meeting in July, the Fed indicated it was unsure about its next move. It said it will make upcoming decisions on rates based on what incoming data say about inflation and the economy.

“We think Powell’s tone at Jackson Hole will be less balanced than the July FOMC minutes,” they wrote in a BofA Global Research report. Tesla, another high-growth stock that's been hurt recently by the threat of higher rates, rose 7% to recover some of its 11% loss from last week.

 

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