(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)
* 10-year Treasury yields at highest since Jan 2020
* Weekly jobless claims rise unexpectedly in the latest week
* Value stocks outperform growth names
* Indexes: Dow up 0.5%, S&P down 0.4%, Nasdaq drops 1.4%
(Adds comment, details; updates prices)
By Shashank Nayar and Medha Singh
March 18 (Reuters) - The S&P 500 eased from a record high on Thursday while the tech-heavy Nasdaq shed more than 1% as a spike in U.S. bond yields accelerated a move out of pandemic winner tech stocks and into economy-linked financials and industrials.
The Russell 1000 value index .RLV , which is heavily comprised of cyclical stocks such as financials and energy, added about 0.3% while the Russell 1000 growth index .RLG , which includes technology stocks, dropped about 1.3%.
The yield on the benchmark 10-year notes US10YT=RR crossed 1.75% to hit a 14-month high, pressuring high-growth companies including Apple Inc AAPL.O , Facebook Inc FB.O , Netflix Inc NFLX.O , Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped between 1.3% and 2.2%.
Tech stocks are particularly sensitive to rising yields because their value rests heavily on future earnings, which are discounted more deeply when bond returns go up.
The blue-chip Dow, on the other hand, hit another record high a day after the Fed projected strongest growth in nearly 40 years as the COVID-19 crisis winds down, and repeated its pledge to keep its target interest rate near zero for years to come. are generally confident in the U.S. equity story.. market has already gone a step ahead and worrying about inflation," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
A $1.9 trillion spending stimulus sparked fears of rising inflation that triggered a jump in longer-end Treasury yields, accelerating a rotation into value stocks at the cost of high-growth tech stocks.
Underscoring the staggered recovery in the labor market, latest data showed the number of American filing for jobless benefits unexpectedly rose last week. separate report indicated the Philly Fed business index jumped more than expected to its highest level since 1973.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI rose 153.17 points, or 0.46%, to 33,168.54, the S&P 500 .SPX lost 15.76 points, or 0.40%, to 3,958.36 and the Nasdaq Composite .IXIC lost 185.64 points, or 1.37%, to 13,339.56.
Bank stocks .SPXBK , sensitive to economic outlook, jumped about 4%, while sectors poised to benefit the most from a reopening economy including financials .SPSY and industrials .SPLRCI hovered near all-time highs.
In corporate news, Accenture (NYSE: ACN ) ACN.N jumped about 1.5% after the IT consulting firm raised its full-year revenue forecast and reported second-quarter revenue above analysts' estimates, as more businesses used its digital services to shift operations to the cloud. General Corp DG.N dropped 6% after the company forecast annual same-store sales and profit below estimates, indicating the pandemic-fueled rush for lower-priced groceries was waning faster than expected. so-called meme stock AMC Entertainment AMC.N rose 1.5% after the movie theater operator said it would have 98% of its U.S. locations open from Friday. issues outnumbered advancers by a 1.4-to-1 ratio on the NYSE and by a 1.2-to-1 ratio on the Nasdaq.
The S&P 500 posted 73 new 52-week highs and no new low, while the Nasdaq recorded 225 new highs and 50 new lows.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.