Late Rally From Tech Stocks Erases Early Wall St. Slump

Bond yields hit highest level since 2018
By Newser Editors and Wire Services
Posted May 2, 2022 4:00 PM CDT
Indexes Close Higher After Tech Stocks Rally
In this photo provided by the New York Stock Exchange, trader Sal Suarino, left, and specialist Meric Greenbaum work on the floor, Monday May 2, 2022.   (Courtney Crow/New York Stock Exchange via AP)

(Newser) – A late rally in big technology stocks erased an afternoon slump on Wall Street and left major indexes moderately higher. The uneven start to May followed a brutal April in which widespread technology sell-offs dragged down major benchmarks. Facebook’s parent company and chipmaker Nvidia each rose 5.3%. The S&P 500 rose 23.45 points, or 0.6%, to 4,155.38. It was down as much as 1.7% earlier. The Dow Jones Industrial Average rose 84.29 points, or 0.3%, to 33,061.50. The Nasdaq rose 201.38 points, or 1.6%, to 12,536.02.

US crude oil prices were relatively unchanged after slipping earlier in the day, the AP reports. European energy ministers are meeting in Brussels to discuss Russian supply issues and sanctions. Russia's invasion of Ukraine prompted a jump in already high oil and natural gas prices. Bond yields rose significantly. The yield on the 10-year Treasury was at 2.98% after briefly rising to 3.00% from 2.89% late Friday. It hadn't been above 3% since Dec. 3, 2018, according to Tradeweb.

Treasury yields have been rising all year as investors prepare for higher interest rates. Markets are expecting an extra-large interest rate increase this week from the Federal Reserve as it tries to tame inflation, which is at its highest level in four decades. The central bank is expected to raise short-term interest rates by double the usual amount when it releases its latest statement on Wednesday. Wall Street is in for another busy week of earnings reports. Expedia and Clorox are among the many companies reporting their results later Monday. Pfizer reports results on Tuesday, CVS Health reports results on Wednesday, and Kellogg reports results on Thursday. (Read more stock market stories.)

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