The mood brightened on Monday, however, as Treasury yields eased after a strong rally, lifting rate-sensitive growth stocks such as Apple Inc and Amazon.com Inc by 1%.
Tesla climbed 4% after the electric carmaker said its Brandenburg plant near Berlin was producing 4,000 cars a week, three weeks ahead of schedule according to a recent production plan reviewed by Reuters.
“Today we are looking at a relief rally because the market fell a lot last weeksaid Sam Stovall, chief investment strategist at CFRA Research in New York.
“Historically, February is the second worst month of the year for the stock market, so investors are coming to the conclusion, from a seasonal perspective, that perhaps stocks could rally at least in the short term.”
Traders increased their bets on a 50 basis point rate hike in March after data last week showed the personal consumption expenditures price index, the metric by which the Fed measures its target inflation rate of 2%, rose 5.4% last month.
Data on Monday showed that new orders for US-made capital goods rose more than expected in January, but orders for durable goods, intended to last three years or more, fell more than expected. Business confidence deteriorated as the Federal Reserve aggressively raised interest rates, but demand for goods, which are normally bought on credit, continues to hold up.
Source: Ambito
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