Wall Street extends recent gains, led by megacaps

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022. REUTERS/Brendan McDermid/File Photo

NEW YORK, Aug 15 (Reuters) – U.S. stocks were higher in afternoon trade on Monday, adding to recent strong gains, with megacap growth stocks rising as U.S. Treasury yields fell.

Shares in Apple Inc ( AAPL.O ), up 0.5%, and Microsoft Corp ( MSFT.O ), also up 0.5%, were among the biggest gainers for the S&P 500 and Nasdaq.

Treasury yields were slightly lower, while China’s central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July. read more

Stocks extended their gains from last week as signs that inflation may have peaked in July boosted investor confidence that a bull market may be on the way.

Some investors have also become more convinced that the economy can avoid a severe downturn even as it copes with high inflation.

“We’re back to growth doing well relative to value, and market participants are looking at (the Federal Reserve) and saying, ‘Hey, they’re going to cut interest rates here sooner than we know, and that’s going to be good for the stock market ,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

Higher interest rates can pressure equity multiples, especially of technology and other growth stocks.

The Dow Jones Industrial Average (.DJI) rose 152.89 points, or 0.45%, to 33,913.94, the S&P 500 (.SPX) gained 15.65 points, or 0.37%, to 4,295.8 and The Nasdaq Composite added (.5IXIC. 0.5% to 13,112.76.

The S&P value index (.IVX) was up 0.3% while the growth index (.IGX) was up 0.5%.

Quarterly reports from major retailers are expected this week and will round out the reporting period for the second quarter. Results from Walmart Inc (WMT.N) are due on Tuesday. read more Walmart’s stock rose 0.3%.

US-listed shares in China’s e-commerce giant Alibaba Group Holding Ltd fell 0.9 percent.

Advances outnumbered decliners on the NYSE by a ratio of 1.03 to 1; on the Nasdaq a 1.20 to 1 ratio favored advancing.

S&P 500 posted 7 new 52-week highs and 29 new lows; The Nasdaq Composite recorded 67 new highs and 25 new lows.

Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Sruthi Shankar in Bengaluru Editing by Arun Koyur and Matthew Lewis

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