Wall St rises as tech stocks bounce back

Posted June 20, 2017

USA stocks opened higher on Monday, with the Dow Jones Industrial Average hitting a record high, as investors snapped up beaten down technology stocks.

The Nasdaq and the S&P 500 are also higher, up 58 points to 6,210 and 11 points to 2,444, respectively.

Earlier in this series, we discussed the tech sector's contribution to the rise of the S&P 500 (VOO) index this year.

On the downside, energy (-0.7%) settled solidly lower as USA crude oil shed another 1.1% to $44.46/bbl, marking its worst level since November.

Apple rose 3.8 per cent to $146.07, providing the biggest boost to technology followed by Microsoft, Alphabet and Facebook.

The greenback was strengthened by comments from New York Federal Reserve President William Dudley who suggested the central bank remains on track to raise USA interest rates further.

The CBOE Volatility Index (VIX - 10.37) fell 0.01 point, or 0.1%.

Amazon was up 0.8 percent, while Wal-Mart, Target and Kroger gained between 0.8 percent and 1.8 percent on Monday.

Consumer staples stocks, which were battered on Friday after Amazon.com's AMZN.O $13.7 billion deal to buy upscale grocer Whole Foods WFM.N , added to their losses.

"It looks like a bet that interest rates, such as the 10-year yield, are bottoming out", said Evans.

Yellen's confidence as her team raised interest rates for the third time in six months last week surprised investors who had expected more caution about the economy following a batch of weak US economic data. S&P 500 e-minis were up 7.25 points, or 0.3 percent, with 138,274 contracts traded. The widespread market gains were aided by the tech sector, with Amazon stock building off its recent momentum by shooting to an all-time high.

Advancing issues outnumbered declining ones on the NYSE by a 1.76-to-1 ratio; on Nasdaq, a 2.01-to-1 ratio favored advancers. The Dow and S&P 500 were on track to secure all-new highs by market close.