Wall Street extends recent gains, led by megacaps

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, June 22, 2022. REUTERS/Brendan McDermid/File Photo

NEW YORK, Aug. 15 (Reuters) – US stocks were higher in midday trading on Monday, adding to recent strong gains, with megacap growth stocks rising as US Treasury yields fell.

Shares of Apple Inc (AAPL.O), up 0.5%, and Microsoft Corp (MSFT.O), also up 0.5%, were among the biggest boosts for the S&P 500 and Nasdaq.

Treasury yields were slightly lower, while China’s central bank cut key interest rates in a surprising move to boost demand after the economy slowed unexpectedly in July. read more

Equities extended last week’s gains as signs that inflation might have peaked in July increased investor confidence that an upward market could emerge.

Some investors have also become increasingly convinced that the economy can avoid a serious downturn, even as it faces high inflation.

“We’re growing again and doing well relative to value, and market participants look to the (Federal Reserve) and say, ‘Hey, they’re going to cut rates here sooner than we know, and that’s going to be good for the stock market. ‘,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

Higher interest rates could weigh down equity multiples, especially in technology and other growth stocks.

The Dow Jones Industrial Average (.DJI) rose 152.89 points or 0.45% to 33,913.94, the S&P 500 (.SPX) gained 15.65 points or 0.37% to 4,295.8 and the Nasdaq Composite (.IXIC) added 65.58 points, or 0.5% to 13,112.76.

The S&P Value Index (.IVX) rose 0.3%, while the Growth Index (.IGX) rose 0.5%.

Quarterly reports from major retailers are expected this week and will conclude the second quarter reporting period. Results from Walmart Inc (WMT.N) are expected Tuesday. read more The share of Walmart rose 0.3%.

US-listed shares of Chinese e-commerce giant Alibaba Group Holding Ltd fell 0.9%.

The advancing issuances outperformed the falling on the NYSE by a 1.03-to-1 ratio; on Nasdaq, the 1.20-to-1 ratio was favorable for advanced traders.

The S&P 500 posted 7 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 67 new highs and 25 new lows.

Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Sruthi Shankar in Bengaluru Editing by Arun Koyyur and Matthew Lewis

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