Benzinga - by Piero Cingari, Benzinga Staff Writer.
It was a mixed morning on Wall Street, with major U.S. indices recording gains, primarily due to a tech outperformance, although losses emerged on bonds, gold, and Bitcoin following a stronger-than-expected inflation report.
The S&P 500 index rose by 0.9%, while the tech-heavy Nasdaq 100 rallied 0.9%. Within the tech space, chipmakers shined, with the VanEck Semiconductor ETF (NASDAQ:SMH) up 2%.
The February Consumer Price Index (CPI) rose by 3.2% year-on-year, exceeding both the previous and expected 3.1% surge. Additionally, the core CPI index, which strips out volatile food and energy items, surprised to the upside at 3.8%, compared to the expected 3.7%.
Treasury yields moved higher, with the policy-sensitive two-year yield soaring by 6 basis points to 4.6% and the 10-year yield rising by 7 basis points to 4.17%.
Markets held firm on expectations for a June rate cut, envisioning a 70% chance, according to the CME Group FedWatch tool.
The Fed is set to hold its two-day policy meeting in a week, during which policymakers will unveil the new macroeconomic projections, revealing the preferred interest rate path.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices & ETFs | Price | % |
| Nasdaq 100 | 18,139.35 | 1.0% |
| S&P 500 | 5,162.83 | 0.9% |
| Dow Jones | 38,936.96 | 0.4% |
| Russell 2000 | 2,056.13 | -0.5% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.8% to $515.04, the SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.4% higher to $389.95 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) rose 1% to $441.69, according to Benzinga Pro data.
Sector-wise, the Technology Select Sector SPDR Fund (NYSE:XLK), was the top performer, up by 1.4%, while the Utilities Select Sector SPDR Fund (NYSE:XLU) trailed, down by 0.7%.
Tuesday’s Stock Movers
- Oracle Corp. (NASDAQ:ORCL) rallied over 12% after reporting better-than-expected quarterly results.
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSMC) rose over 3% after obtaining grants worth over $5 billion from the U.S. Department of Commerce for chip production.
- Southwest Airlines Company (NYSE:LUV) tumbled 15% after announcing a sharp decline in Boeing 737-8 plane deliveries, from the 79 previously expected to 46 for 2024.
- Other stocks moving on earnings were Asana, Inc. (NYSE:ASAN) (down about 11%), Vail Resorts, Inc. (NYSE:MTN) (up 1.5%), Archer-Daniels-Midland Company (NYSE:ADM) (up 4.5%), International Game Technology PLC (NYSE:IGT) (down over 6%) and Kohl’s Corporation (NYSE:KSS) (down over 5%).
Wall Street illustration created using AI via MidJourney.
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