US Stocks end mixed

The US stocks were mixed on Friday, 12 March 2021, as rising bond yields served to push financials higher and technology lower. At the close of trade, the Dow Jones Industrial Average index advanced 293.05 points, or 0.9%, to 32,778.64. The S&P500 index added 4.00 points, or 0.1%, to 3,943.34. The tech-heavy Nasdaq Composite Index fell 78.80 points, or 0.59%, to 13,319.86. for the week, the Dow soared by 4.1%, the Nasdaq surged up by 3.1%, and the S&P 500 jumped by 2.6%.

Market participants expressed optimism about the economy reopening after President Joe Biden directed states to make all adults eligible for a coronavirus vaccine by May 1st. The vaccine news combined with the new $1.9 trillion stimulus package led to hopes for a return to normalcy after a year of the coronavirus pandemic.

 

Adding to the positive sentiment, the University of Michigan released a report showing U.S. consumer sentiment improved by much more than expected in the month of March. The University of Michigan said its consumer sentiment index jumped to 83.0 in March after dipping to 76.8 in February. The report showed the current economic conditions index surged up to 91.5 in March from 86.2 in February, while the index of consumer expectations spiked to 77.5 from 70.7.

However, market gains trimmed as the recent rise in U.S. Treasury yields has raised fears of a sudden tapering of monetary stimulus. The yield on the benchmark 10-year note stood at 1.642% on Friday, the highest level since February of last year.

The high-flying but yield-sensitive group of stocks including of Facebook Inc, Apple Inc, Amazon.com Inc, Netflix Inc, Google-parent Alphabet Inc, Tesla Inc and Microsoft Corp fell. Tech, communication services and consumer discretionary indexes slipped. On the other side, banks, financials and industrials clinched new record levels.

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