US: Tech shares lead stocks as Treasury yields retreat

TECH shares led the stock market higher on Monday, extending an upturn on retreating US Treasury yields and bullish sentiment about artificial intelligence.

Stocks have been on the front foot since late October, as yields have fallen and markets became more confident the Federal Reserve is done hiking interest rates.

“You certainly have a recipe for a continuation of the rally we’ve seen for the last three weeks,” said Art Hogan of B Riley Wealth Management.

The Dow Jones Industrial Average finished up 0.6 per cent at 35,151.04.

The broad-based S&P 500 gained 0.7 per cent to 4,547.38, while the tech-rich Nasdaq Composite Index gained 1.1 per cent to 14,284.53.

Jack Ablin of Cresset Capital said markets had been encouraged after the success of a US Treasury auction for 20-year bonds, sending yields lower.

Investors are also looking ahead to minutes of the Fed’s most recent policy meeting, due on Tuesday, and some economic releases.

But Ablin said the week is expected to be “very quiet” in light of Thursday’s Thanksgiving holiday, when markets are closed.

Among individual companies, Microsoft shares jumped 2.1 per cent after announcing it hired ousted OpenAI co-founder Sam Altman.

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Nvidia, another tech company closely identified with artificial intelligence, gained 2.3 per cent ahead of its earnings report on Tuesday.

Boeing jumped 4.7 per cent following an upgrade by analysts at Deutsche Bank.

Bristol-Myers Squibb slumped 3.8 per cent after announcing that a US Food and Drug Administration panel will miss a target date to take action on a new cancer therapy for multiple myeloma. AFP