Market Commentary Tech stocks had a good Thursday
• US stocks closed mixed on Thursday, though tech shares enjoyed a bump. The Dow Jones Industrial Average dropped 210 points, or 0.62%, while the S&P 500 was little changed and the Nasdaq Composite added 0.87%. The Nasdaq needs to gain just 0.1% to get back to its all-time closing high reached on Monday.
• The yield on the 10-year Treasury note slipped to 1.52%, only a touch above where it was before the Fed spoke on Wednesday. Still, the dollar, which usually rises and falls with US bond yields, has strengthened. The US Dollar Index rose 0.9%, to 91.95. The falling Treasury yield has cleared the way for tech stocks to rise. Many tech companies are fast-growing, looking for profit expansion for years into the future—and lower long-dated bond yields boost the value of future profits.
• Japan’s Nikkei Stock Average closed 0.9% lower, weighed by precision instruments and steel shares. Chinese stocks ended the session higher, supported by electronics and IT sectors, while construction-material shares weakened. The Shanghai Composite Index snapped a three-session losing streak, rising 0.2%. The Straits Times Index rose marginally by 0.04% to 3,138.31.