March 9 Reuters U.S. stocks rallied on Tuesday, with the Nasdaq gaining about 4 to recoup heavy losses from the previous session as U.S. bond yields retreated and investors scooped up battered technology stocks.
Tesla Inc jumped the most in almost a year, while Amazon.com Inc and Microsoft Corp posted the biggest singleday gains in several weeks. The tech stars suffered sharp losses in recent weeks as rising yields raised concerns over their high valuations.
The Dow set a record intraday.
News that a 1.9 trillion coronavirus relief package was nearing final approval sparked a spike in yields on Monday, pushing the techheavy Nasdaq to end more than 10 below its Feb. 12 closing high, confirming a correction for the index.
U.S. 10year Treasury note yields eased to as low as 1.523 after hovering near 13month highs of 1.613 on Monday. Longerdated yields have jumped over the last month as investors price in a faster rebound and higher inflation that expected at the start of the year.
The market is adjusting to the new level in interest rates, said Kristina Hooper, chief global market strategist at Invesco in New York.
Companies whose products and services are in demand when the economy is doing well, known as cyclicals, and smallcap stocks will outperform this year, she said. Tech will end the year higher but not be the leader as it was in the past years rally.
Today the 10year is down a bit, and that takes pressure off valuations, so tech is performing well, Hooper…