Dow, S&P hits record as big tech retreats and bond yields surge
10-year yield climbed 11 basis points to 1.63%
The Dow Jones Industrial Average and the S&P 500 rallied to record highs Friday as tech and other high-flying growth stocks succumbed to rising bond yields.
The Dow climbed 291 points, or 0.9%, and the S&P added 0.1%. The tech-heavy Nasdaq, meanwhile, slumped 0.59%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 49395.16 | -267.50 | -0.54% |
| I:COMP | NASDAQ COMPOSITE INDEX | 22682.729157 | -70.91 | -0.31% |
| SP500 | S&P 500 | 6861.89 | -19.42 | -0.28% |
The mixed session came as aggressive selling of longer-dated U.S. Treasurys caused the 10-year yield to rise 11 basis points to 1.63%, making for the highest close since February 2020.
Looking at stocks, high-growth companies including mega-cap technology names like Tesla Inc., Microsoft Corp. and Facebook Inc. were all lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 411.71 | +0.39 | +0.09% |
| MSFT | MICROSOFT CORP. | 398.46 | -0.23 | -0.06% |
| FB | PROSHARES TRUST S&P 500 DYNAMIC BUFFER ETF | 42.31 | -0.05 | -0.11% |
Financials, which benefit from a steepening of the yield curve, all gained with Bank of America Corp. and JPMorgan Chase & Co. finishing among the top performers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 52.77 | -0.59 | -1.12% |
| JPM | JPMORGAN CHASE & CO. | 308.03 | -0.76 | -0.25% |
Meanwhile, Novavax Inc.’s COVID-19 vaccine was found to be 96% effective against the original version of the virus, according to a U.K. study. However, the vaccine was 86% effective against the U.K. variant and only 55% effective against the South African strand. Shares soared on the developments.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVAX | NOVAVAX INC. | 9.22 | +0.54 | +6.16% |
AstraZeneca plc and Oxford University’s COVID-19 vaccine was suspended in Thailand due to blood clots in some recipients. The vaccine has also been put on hold in eight European countries, including Norway and Denmark.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AZN | ASTRAZENECA PLC | 208.76 | +2.25 | +1.09% |
In earnings, Ulta Beauty Inc. reported quarterly earnings and revenue that exceeded Wall Street estimates but issued disappointing full-year guidance amid concern masking and social-distancing orders will remain in place for much of 2021. The company also announced that CEO Mary Dillon will step down in June and be replaced by President Dave Kimbell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ULTA | ULTA BEAUTY INC. | 692.79 | +3.37 | +0.49% |
In commodities, West Texas Intermediate crude oil fell 41 cents to $65.61 a barrel and gold slumped $2.80 to $1,719.50 an ounce.
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European markets ended mixed with Germany’s DAX 30 down 0.46%, France’s CAC 40 inching up 0.21% and Britain's FTSE 100 climbing by 0.36%.
In Asia, Hong Kong’s Hang Seng index lost 2.2% while China’s Shanghai Composite Index and Japan’s Nikkei 225 advanced 0.47% and 1.73%, respectively.