NEW YORK, Sept 12 — Wall Street reversed course to trade higher today as gains in technology stocks more than offset declines in financials, with investors fretting over the timing of the next interest rate hike.
The S&P 500 technology index rose 0.52 per cent, helped by a 1.4 per cent rise in Apple. The stock was also the top influence on all three major indexes.
A number of top Fed officials have hinted at a possible raise at the central bank’s next policy-setting meeting on September 20-21. The latest was Atlanta Fed Bank President Dennis Lockhart who said today a “serious discussion” was warranted.
However, Minneapolis Fed President Neel Kashkari suggested to CNBC that he saw little urgency to take action given the state of the economy.
Fed Governor Lael Brainard’s speech at 1:15pm ET will be scrutinised to see if she maintains her dovish stance on rates or takes a more aggressive posture.
Nine of the 10 major S&P 500 sectors were higher, with the defensive sectors — utilities, telecom services and consumer staples — the top percentage gainers.
Financials were the only sector in the red.
“Today what you are seeing is a market that is checking to see if the action on Friday was justifiable,” said Robert Pavlik, chief market strategist at Boston Private Wealth.
“You’re also seeing some buyers step in, trying to do some bargain hunting. Though their commitment is suspect right now.”
At 10:33am ET the Dow Jones Industrial Average was up 54.85 points, or 0.3 per cent, at 18,140.3.
The S&P 500 was up 8.86 points, or 0.42 per cent, at 2,136.67.
The Nasdaq Composite was up 29.15 points, or 0.57 per cent, at 5,155.06.
The rising expectations of a September rate hike had sent the three major US stock indexes tumbling on Friday in their worst decline since the Brexit vote.
That distanced the benchmark S&P 500 index from its record highs, which it has been clocking since July when expectations of a rate hike this year were muted.
Perrigo rose 3.4 per cent after activist investor Starboard Value disclosed a stake and delivered a letter to the drugmaker’s executives. The stock was the top percentage gainer on the S&P.
Declining issues outnumbered advancing ones on the NYSE by 1,426 to 1,405. On the Nasdaq, 1,318 issues fell and 1,282 rose.
The S&P 500 index showed no new 52-week highs and four new lows, while the Nasdaq recorded eight new highs and 28 new lows. — Reuters
