US stocks bounce back with tech; Treasuries weaken, dollar steady

Bloomberg

US stocks bounced back from Monday’s selloff as the rout in technology selloff eased and carmakers rallied on strong sales reports. Treasuries and gold retreated.
The S&P 500 climbed from the lowest level since early February after closing below the 200-day moving average for the first time since the Brexit vote almost two years ago. General Motors jumped almost 4 percent, and Nvidia rallied 3 percent. The 10-year Treasury yield pushed above 2.76 percent, while the dollar was steady. The Stoxx Europe 600 Index headed for its first decline in four days as markets reopened after the long weekend.
Investors sifted through the rubble of the latest selloff in US shares, with some of the hardest hit stocks rising again on Tuesday. A host of issues still confront the market, from trade angst as President Donald Trump looks for a quick win on Nafta negotiations to concern that high-flying technology shares have further to retreat.
The fluctuations in mood come as investors prepare for earnings season. They still anticipate a strong showing, but will be watchful for any more signs of a slowdown in the synchronised global expansion.
“What we are really seeing across the economies and markets are opposing forces playing out: in the economy you are seeing Fed versus inflation, in markets you are seeing momentum versus fundamental supports,” JPMorgan Asset Management Global Market Strategist Hannah Anderson told Bloomberg TV.
“Investors need to be aware of these opposing forces along with a lot of the headline risk we are seeing come through when it comes to trade and regulation and how that’s going to impact their portfolios.”
Despite the turmoil in technology stocks, music-streaming service Spotify Technology SA is set to launch its alternative IPO on the New York Stock Exchange. US employment data are due on Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months. The Reserve Bank of India decides on policy on Thursday.
The S&P 500 rose 0.4 percent in New York. The Nasdaq 100 Index jumped 0.5 percent. The Stoxx Europe 600 Index fell 0.2 percent, the first retreat in more than a week.
The MSCI All-Country World Index declined 0.1 percent to the lowest in 19 weeks. The MSCI Emerging Market Index rose 0.2 percent to the highest in a week. The MSCI Asia Pacific Index dipped 0.1 percent.
The Bloomberg Dollar Spot Index declined 0.1 percent to the lowest in a week. The euro decreased less than 0.05 percent to $1.2299, the weakest in two weeks. The British pound gained 0.1 percent to $1.4063. The Japanese yen fell 0.3 percent to 106.25 per dollar.
The yield on 10-year Treasuries gained two basis points to 2.75 percent, the biggest advance in more than a week. Germany’s 10-year yield was unchanged at 0.50 percent, the lowest in 12 weeks. Britain’s 10-year yield dipped one basis point to 1.35 percent, reaching the lowest in more than 10 weeks. West Texas Intermediate crude gained 0.4 percent to $63.28 a barrel. Copper increased 0.4 percent to $3.06 a pound. Gold decreased 0.2 percent to $1,338.88 an ounce.