Wall St wins, with tech, growth shares in the lead

  • Nike up after third quarter results
  • Tesla shares rally over delivery of German-made cars
  • Indices: Dow up 0.7%, S&P 500 up 1.1%, Nasdaq up 2%

NEW YORK, March 22 (Reuters) – U.S. stocks ended higher on Tuesday, led by a 2% gain in the Nasdaq, as tech stocks and other big growth names rebounded from recent losses and Nike rose after posting upbeat results.

Financial stocks were also among the best performers on the day, with the benchmark 10-year Treasury yield climbing to 2.368%, the S&P 500 Banking Index (.SPXBK) up 2.5%.

All S&P 500 sectors except energy (.SPNY) ended higher on the day. The three main indices have gained five of the last six sessions.

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The Federal Reserve last week raised the federal funds rate by a quarter of a percentage point from near zero, and Fed officials are doing nothing to downplay rising market expectations, the US central bank will raise rates by half a percentage point in May to tame inflation. Read more

While higher borrowing costs are negative for consumers and many businesses, they are helping to improve the earnings outlook for banks.

Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O), Alphabet Inc (GOOGL.O) and Tesla Inc (TSLA.O) gave the biggest boosts to the S&P 500 and the Nasdaq. The S&P 500 Technology Index (.SPLRCT) rose 1.4% on the day, but remained down 10% for the quarter so far, among the biggest declines among major sectors.

With the recent lows, “you’ve kind of really eliminated the sellers,” said Jim Paulsen, chief investment strategist at Leuthold Group in Minneapolis. “Now you see even the old leadership bouncing back a bit, giving people some support so maybe the worst is over.

“Beneath all of that, economic and earnings data remained quite good.”

Shares of Nike Inc (NKE.N) rose 2.2% after the company beat quarterly profit and revenue expectations and said manufacturing issues that weighed on sales in the past last six months were in the rearview mirror. Read more

The Dow Jones Industrial Average (.DJI) rose 254.47 points, or 0.74%, to 34,807.46, the S&P 500 (.SPX) gained 50.43 points, or 1.13%, to 4,511.61 and the Nasdaq Composite (.IXIC) added 270.36 points, or 1.95%, to 14,108.82.

Tesla Inc (TSLA.O) jumped 7.9% as the electric carmaker delivered its first German-made cars to customers at its gigafactory in Gruenheide. Read more

On Monday, Fed Chairman Jerome Powell said the central bank needed to move “quickly” to raise rates. When asked what would prevent the central bank from raising rates by half a percentage point at the policy meeting on May 3-4, he replied: “Nothing.” Powell is expected to speak again on Wednesday.

Investors were still keeping a close eye on the Ukraine-Russia conflict, with Ukrainian officials saying the beleaguered port city of Mariupol is continually being shelled as Russian forces step up efforts to seize it. Read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 1.71 to 1; on the Nasdaq, a ratio of 2.53 to 1 favored advancers.

The S&P 500 posted 36 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 37 new lows.

Volume on U.S. exchanges was 12.14 billion shares, compared to an average of 14.5 billion for the full session over the past 20 trading days.

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Reporting by Caroline Valetkevitch in New York Additional reporting by Devik Jain and Amruta Khandekar in Bengaluru Editing by Arun Koyyur and Matthew Lewis

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