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US STOCKS-Tech stocks power Nasdaq to record high

US STOCKS-Tech stocks power Nasdaq to record high

reuters.com · 09/01/2021 10:40
US STOCKS-Tech stocks power Nasdaq to record high

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Tech stocks lead gains; Apple hits record high

August private jobs growth misses expectations

Indexes: Dow down 0.13%, S&P up 0.13%, Nasdaq adds 0.56%

Updates to open

By Shashank Nayar

- The Nasdaq Composite hit a record high on Wednesday, with high-growth technology stocks in the lead after weaker-than-expected private payrolls data raised hopes for an extended support from the U.S. central bank.

Technology stocks .SPLRCT, which tend to benefit from a low-rate environment, were up 0.7%, while sectors considered as bond-proxies such as utilities .SPLRCU rose 1.2%.

Apple AAPL.O jumped 1.9% to hit record highs, while Microsoft MSFT.O, Google GOOGL.O, Amazon AMZN.O and Netflix NFLX.O gained 1%.

The ADP report, published ahead of the government's more comprehensive employment report on Friday, showed U.S. private employers hired far fewer workers than expected in August. nN9N2NL019

"If we see employment slowing on Friday, the Fed is most likely to not hint at any tapering until jobs are back on track," said Sam Stovall, chief investment strategist at CFRA.

U.S. Federal Reserve Chair Jerome Powell has suggested that an improving labor market will be a key factor affecting the decision for a tapering of its massive asset purchases.

Wall Street's main indexes have hit record highs recently, with the benchmark S&P 500 .SPX notching a solid 2.9% rise in August as investors shrugged off risks around a rise in new coronavirus infections and hoped for the Fed to remain dovish in its policy stance.

Another set of data showed U.S. manufacturing activity unexpectedly picked up in August amid strong order growth, but a measure of factory employment dropped to a nine-month low, likely as workers remained scarce. nN9N2NL018

Surveys earlier on Wednesday showed Asian and European factory activity lost momentum in August as the coronavirus pandemic disrupted supply chains. nL1N2Q30FL

Economically sensitive energy stocks .SPNY, materials .SPLRCM and industrial stocks .SPLRCI fell between 0.6% and 0.9%, keeping the S&P 500 and Dow subdued.

Rate-sensitive banks fell as U.S. government bond yields slipped US10YT=RR. Wells Fargo WFC.N fell 3.8%, extending losses for a second day after report of U.S. sanctions on the bank. nL1N2Q22PT

At 10:26 a.m. ET, the Dow Jones Industrial Average .DJI was down 45.90 points, or 0.13%, at 35,314.83, the S&P 500 .SPX was up 5.74 points, or 0.13%, at 4,528.42, and the Nasdaq Composite .IXIC was up 84.99 points, or 0.56%, at 15,344.22.

Shares of Calvin Klein and Tommy Hilfiger owner PVH Corp PVH.N surged 13.8% after it raised its full-year earnings forecast. nL4N2Q243C

Video chipmaker Ambarella AMBA.O gained 19.3% after it beat profit estimates and forecast revenue above market expectations.

Advancing issues outnumbered decliners by a 1.24-to-1 ratio on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.

The S&P index recorded 32 new 52-week highs and no new low, while the Nasdaq recorded 76 new highs and 9 new lows.


(Reporting by Shashank Nayar in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty)

((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))