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MARKET REVIEW. The New York Stock Exchange concluded in the green on Monday, driven by a rebound in the tech sector as bond rates eased somewhat.
The Toronto Stock Exchange ended the day on a small decline, dragged down by stocks in the energy, financial and industrial sectors.
The clues
In Toronto, the index S&P/TSX ended the day on a decline of 38 points, or 0.21%, to 18,815 points.
In New York, the S&P 500 increased 27 points, or 0.7%, to 3,940 points.
The Dow Jones climbed 103 points, or 0.32%, to 32,731 points.
The Nasdaq gained 162 points, or 1.23%, to 13,377 points.
The context
The rates on 10-year Treasury bills slipped around 1.67%, far from the 1.74% reached in session Friday.
Last week, these bond yields climbed to a 14-month high, worrying the stock market which experienced a week at half mast, weighed down by the tech sector, more sensitive to fears of inflation.
“Rates fell and tech stocks rebounded. This is also due to the expiration of options contracts “which took place on Friday” and which allowed the shares to recover, “commented Peter Cardillo, of Spartan Capital Securities.
Seven of the eleven sectors of the S&P 500 finished higher, starting with information technology.
Apple climbed 2.83%, Tesla took 2.31%, whileAmazon and Facebook gained more than 1%.
“Falling Treasury yields have relieved pressure on the information technology sector and other growth-related stocks that had recently come under pressure, as the financial sector has lagged behind,” Schwab analysts noted. .
Bank stocks as a whole (-1.30%) were weighed down by the ebb in rates and by a Fed announcement on Friday. The central bank decided it would not extend an exemption on capital reserves that helped banks lend during the height of the health crisis.
JPMorgan Chase dropped 2.74%, Goldman Sachs 1.44% and Bank of America 2,21%.
The railway company Kansas City Southern jumped 10.79%, after announcing on Sunday his marriage to Canadian Pacific Railway for $ 25 billion in cash and shares.
The two networks combined constitute the first rail freight network to join Canada, the United States and Mexico.
The Calgary company’s stock fell 5.81%.
A disappointing indicator, home resales for February, which showed a steeper-than-expected drop (-6.6%), did not however alarm investors. This slowdown in real estate is due in particular to the extreme cold spell which paralyzed activities in part of the country.
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