Big Tech stocks rally to lift Wall Street

Central bankers await Powell’s speech at Friday economic event

NEW YORK — Wall Street held a bit firmer Monday following a painful threeweek losing streak.

The S&P 500 rose 30.06, or 0.7 percent, to 4,399.77 for its first gain in five days. Rallies for Nvidia, Microsoft and other Big Tech stocks lifted the index even though the majority of stocks within it fell.

The Dow Jones Industrial Average slipped 36.97 points, or 0.1 percent, to 34,463.69, and the Nasdaq composite climbed 206.81, or 1.6 percent, to 13,497.59.

It was a return to form for Nvidia, 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 to touch its highest level since 2007 after briefly climbing above 4.34 percent. That’s up from 4.25 percent late Friday and from less than 0.60 percent in 2020.

Higher yields are good for people buying bonds, who get paid more in interest for their investments.

But it also makes investors less willing to pay high prices for stocks and other investments that are less steady.

A swift rise for yields globally has shaken stock markets worldwide. It’s added to concerns that stock prices overshot during their strong run earlier this year and that signals keep showing China’s economic recovery is faltering.

Powell at Jackson Hole

This week’s main economic event is likely to be a speech on Friday by Federal Reserve Chair Jerome Powell. The Jackson Hole, Wyoming, setting for his speech has been the site of major policy announcements in the past by the Fed, and it’s one of the most important events each year for central bankers globally.

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.

The Fed has already pulled its main interest rate to its highest level since 2001 in an effort to grind down high inflation. High rates do that by slowing the entire economy bluntly and hurting prices for investments.

The economy has remained resilient despite much higher interest rates. While the solid job market and spending by U.S. households ease long-held worries about a possible recession, they could also add upward pressure on inflation.