The tech-heavy index rose 0.4%. The S&P 500 gained 0.3%. The Dow Jones Industrial Average rose 131 points, or 0.3%
The Nasdaq is on pace for its best week since June 27, while the S&P is riding its best week since the holiday-shortened one that ended on July 3.
“U.S. equity futures are moderately in the green, but who knows what that really means when they were soaring this time yesterday, and what happened was that an intra-day +310-point surge in the Dow morphed into a -224 point decline at the close,” Rosenberg Research’s David Rosenberg wrote earlier in the morning.
The market has been riding a resurgence in Big Tech, and earnings are a big reason why. Rosenberg pointed out that if you strip out megacap tech stocks, earnings growth in the U.S. is only about 2.5% year over year, leading to a concentration where the 10 biggest stocks account for 40% of the market.
The yield on the 2-year Treasury note rose to 3.76%. The 10-year yield rose to 4.27%. The bond market didn’t react much yesterday to President Donald Trump’s decision to pick Stephen Miran, chair of the White House Council of Economic Advisers, for the Federal Reserve Board of Governors.
“It is borderline hilarious that Miran, an open critic of the Fed’s move in 2020 to ease policy in the face of the pandemic shock, is now aggressively pushing for rate cuts amidst the current and prospective tariff shock (both with supply-side cost pressure impacts),” wrote Rosenberg.
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