In this Nov. 23, 2020 file photo, stone sculptures adorn the New York Stock Exchange. (AP Photo/Seth Wenig, File)
By Damian J. Troise and Alex Veiga
Technology companies led stocks to more gains on Wall Street Thursday, nudging the S&P 500 to an all-time high for the third time this week.
The benchmark index rose 0.4% and is on track for its third straight weekly gain. Stocks within the S&P 500 were about evenly split between gainers and losers, with technology companies driving much of the rally. Those gains were tempered mainly by a slide in energy stocks and real estate companies.
Bond yields, which had been steadily ticking higher, continued to inch back from the highs they hit earlier in the month. The yield on the 10-year U.S. Treasury note, which influences interest rates on mortgages and other loans, fell to 1.63% from 1.65% late Wednesday. It had been as high as 1.75% on Monday.
That pullback in yields took some pressure off technology stocks, which have slipped over the last few months as yields jumped and made the shares look pricey. The sector has also seen choppy trading as investors shift more money into companies that stand to benefit from the economic recovery.
“We expect rates to rise because the economy is looking better," said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I don't think that the 10-year (Treasury yield) moving around in the short term is really an issue for the market.”
The S&P 500 rose 17.22 points to 4,097.17. The index also set record highs on Monday and Wednesday. The Dow Jones Industrial Average gained 57.31 points, or 0.2%, to 33,503.57. The tech-heavy Nasdaq composite climbed 140.47 points, or 1%, to 13,829.31.
Small company stocks, which have been outpacing the broader market this year, also had a good showing. The Russell 2000 index of smaller companies picked up 19.54 points, or 0.9%, to 2,242.60. The index is up 13.6% so far this year, while the S&P 500, which tracks large companies, is up 9.1%.
Big Tech stocks were among the biggest beneficiaries as bond yields cooled off. Apple rose 1.9%, Microsoft gained 1.3% and Amazon added 0.6%.
Investors are showing cautious optimism about the economic recovery, especially in the U.S., where vaccine distribution has been ramping up and President Joe Biden has advanced the deadline for states to make doses available to all adults to April 19.
But it's clear the economy has much to do when it comes to recovery. The number of Americans who filed for unemployment benefits last week rose again last week, as many businesses remain closed or partially shut down due to the pandemic.
Much of the economy is recovering, but employment needs to pick up in order for a full recovery to occur, analysts say. The market will likely continue to be choppy as investors shift money to some of the sectors and companies hardest hit by the pandemic. They are also weighing signs of economic growth against the lingering threat of COVID-19.
“We’re still at the mercy of the virus and the race between the virus and vaccines and getting a sense of the reopening of the economy," said Liz Ann Sonders, chief investment strategist at Charles Schwab.
In remarks to the International Monetary Fund Thursday, Federal Reserve Chair Jerome Powell said a number of factors are putting the nation “on track to allow a full reopening of the economy fairly soon.”
The minutes revealed that Fed officials were encouraged last month by evidence the U.S. economy was picking up, but they showed no sign of moving closer to ending their bond purchases or lifting their benchmark short-term interest rate from nearly zero.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
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Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
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