Wall Street is 'Terrorizing' Again, This Happens to US Stocks!

<p>&nbsp;The S&amp;P 500 and Nasdaq indexes posted gains on Tuesday, as both benchmarks sought to extend their high gains from the previous session.</p><p><br /></p><p>The broader market index rose 0.4%, while the Nasdaq rose 0.6%. The Dow Jones Industrial Average was slightly behind with an increase of only 31 points or 0.1%.</p><p><br /></p><p>Tech stocks rose 0.9% to lead the S&amp;P 500's gains. Meanwhile, shares of Lowe's rose 2% after the company reported mixed results but affirmed full-year guidance.</p><p><br /></p><p>The Nasdaq posted its biggest gain of the month in Monday's trading session, rising 1.6%. The S&amp;P 500 added nearly 0.7%. Both markers snapped four-day losses, and the Nasdaq posted its biggest one-day gain since August. The Dow Jones was down 0.1%.</p><p><br /></p><p>Broader market indexes and the tech-heavy Nasdaq posted gains even as 10-year bond yields hit their highest level since November 2007. Technology stocks based on past data are seen as struggling in a high-rate environment, making gains along with gains on the day Tuesday drew more attention from Wall Street.</p><p><br /></p><p><br /></p><p>“We are seeing positive returns in the stock market, which we did not see last week. We think interest rates will be kept higher for longer and perhaps the stock market welcomes this,” said Katy Kaminski, chief market strategist at AlphaSimplex.</p><p><br /></p><p>However, some analysts on Wall Street are not convinced that this increase can continue for a longer period of time.</p><p><br /></p><p>“Typically, a spike in bond yields exposes weaknesses in other areas. Rising yields will make debt restructuring more burdensome,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. "Among other reasons yields are rising is because investors are starting to be realistic about the Fed's direction (more rate hikes are likely to happen)."</p><p><br /></p><p>“This is a risk to technology stocks and growth stocks with high PE multiples. Therefore, we expect the possibility of additional declines in equity markets,” added Horneman.</p><p><br /></p><p>Investors are keeping an eye on Nvidia's earnings which are expected to be released on Wednesday. Its shares rose more than 8% on Tuesday, making it among the tech sector's top performers. The company is widely seen as a trendsetter in the era of artificial intelligence and sentiment.</p>