Technology companies led stocks higher on Wall Street on Monday, reversing some of the market’s losses from last week, as investors welcomed some easing in long-term bond yields.
A steady rise in bond yields over the last month has been drawing investors away from highflying tech stocks, but traders also have been quick to snap up tech stocks on days when bond yields decline or only rise slightly. The S&P 500 added 27.49 points to close at 3,940.59. The Dow Jones industrial average rose 103.23 points, or 0.3%, to 32,731.20. The Nasdaq climbed 162.31 points to 13,377.54. The Russell 2000 index of smaller companies slid 20.70 points, or 0.9%, to 2,266.84.
But a rise in bond yields causes parts of the stock market to appear more expensive than others, the dominant example being technology stocks. Big technology stocks rose sharply last year, and their high valuations make them a prime target for selling when investors can find safer places to park their money.Traders seized on the pullback in bond yields to snap up shares in some of the Big Tech companies Monday. Amazon rose 1.2% and Apple gained 2.8%, while Microsoft rose 2.4%.
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