Dow, S&P hits record as big tech retreats and bond yields surge – Fox Business

Constellation Research founder Ray Wang on his outlook for technology stocks like Coupang and Roblox.

The Dow Jones Industrial Averageand the S&P 500 rallied to record highs Friday as tech and other high-flying growth stocks succumbed to rising bond yields.

The Dow climbed 291points, or 0.9%, and the S&P added 0.1%. The tech-heavy Nasdaq, meanwhile, slumped 0.59%.

The mixed session came as aggressive selling of longer-dated U.S. Treasurys caused the 10-year yield to rise 11basis points to 1.63%, making for the highest close since February 2020.

Looking at stocks, high-growth companies including mega-cap technology names like Tesla Inc., Microsoft Corp. and Facebook Inc. were all lower.

Financials, which benefit from a steepening of the yield curve, all gained with Bank of America Corp. and JPMorgan Chase & Co. finishing among the top performers.

Meanwhile, Novavax Inc.s COVID-19 vaccine was found to be 96% effective against the original version of the virus, according to a U.K. study. However, the vaccine was 86% effective against the U.K. variant and only 55% effective against the South African strand. Shares soared on the developments.

AstraZeneca plc and Oxford Universitys COVID-19 vaccine was suspended in Thailand due to blood clots in some recipients. The vaccine has also been put on hold in eight European countries, including Norway and Denmark.

In earnings, Ulta Beauty Inc. reported quarterly earnings and revenue that exceeded Wall Street estimates but issued disappointing full-year guidance amid concern masking and social-distancing orders will remain in place for much of 2021. The company also announced that CEO Mary Dillon will step down in June and be replaced by President Dave Kimbell.

In commodities, West Texas Intermediate crude oil fell 41cents to $65.61a barrel and gold slumped $2.80to $1,719.50 an ounce.

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European markets ended mixed with Germanys DAX 30 down 0.46%, Frances CAC 40 inching up 0.21% and Britain's FTSE 100 climbing by 0.36%.

In Asia, Hong Kongs Hang Seng index lost 2.2% while Chinas Shanghai Composite Index and Japans Nikkei 225 advanced 0.47% and 1.73%, respectively.

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Dow, S&P hits record as big tech retreats and bond yields surge - Fox Business