Markets rally as North Korea tensions ease
NEW YORK — U.S. stocks rallied yesterday as technology companies and banks helped companies regain a lot of the ground they lost last week, although the calm that has defined the market this year wasn’t quite restored.
Almost 90 percent of the Standard & Poor’s 500 index finished higher. Technology stocks outpaced the rest of the market following a strong report on the state of Japan’s economy. Last week, rising tensions between the U.S. and North Korea sent stocks to some of their biggest losses in 2017. That eased yesterday after officials said fighting is not imminent.
“What the market really reacted negatively to on Thursday was Trump’s somewhat incendiary comments about ‘fire and fury,’ ” said Dave Lafferty, chief market strategist of Natixis Global Asset Management. “The administration sort of walked back Trump’s comments over the weekend.”
But while stocks climbed, investors weren’t ready to loosen their grip on some traditionally safe investments. Bond prices slipped only by a small amount and gold finished a little lower, while silver prices rose.
The S&P 500 jumped 24.52 points, or 1 percent, to close at 2,465.84. The Dow Jones industrial average gained 135.39 points (0.6 percent), to 21,993.71. The Nasdaq composite added 83.68 points (1.3 percent), to 6,340.23. The Russell 2000 index of smaller companies climbed 20.08 points (1.5 percent), to 1,394.31.
Among technology companies, Apple added $2.37 (1.5 percent), to $159.85 and Microsoft picked up $1.09 (1.5 percent), to $73.59. After two days of losses, Nvidia jumped $12.44 (8 percent), to $168.40 as chipmakers made outsize gains.
Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.22 percent from 2.19 percent late Friday. That helped banks, as higher bond yields mean higher interest rates and greater profits on mortgages and other loans.
Bank of America climbed 56 cents (2.3 percent), to $24.42 and JPMorgan Chase gained $1.07 (1.2 percent), to $92.49.