Tech stocks power S&P to high
The tech rout that has kept traders on edge for weeks is finally letting up. That’s proving to be good news for the whole market.
After erasing almost $400 billion in equity value at its worst point during the June selloff, the Nasdaq 100 Index rose for six days, pulling within 1 percent of its record.
In the end, the Standard & Poor’s 500stock index gained 1.4 percent to an all-time closing high of 2,459.27, the Dow Jones industrial average climbed 1 percent, or 223.4 points, to 21,637.74, also a record, and the Nasdaq Composite Index increased 2.6 percent to 6,312.47.
“Investors are gravitating back toward to a lot of the tech stocks,” said Peter Tuz, who helps manage $350 million as president of Chase Investment Counsel. “The fact that leaders are regaining their strength is a good thing for the market. I hope the worst is over.”
Large speculators, mostly hedge funds, missed the rally in tech stocks as data released from Commodity Futures Trading Commission showed they cut net positions in Nasdaq 100 futures for a fourth week.
The U.S. Treasury will sell $39 billion of three-month bills and $33 billion in sixmonth bills Monday. They yielded 1.05 percent and 1.13 percent, respectively, in whenissued trading. It will also sell $20 billion 52-week bills and four-week bills Tuesday. On Thursday it will also sell $13 billion of 10-year TIPS.