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    Stocks Rise as Lower Bond Yields Help Lift Tech Companies | Business News

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    By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

    Stocks are closing moderately higher on Wall Street. The S&P 500 was helped to a new high Thursday by large technology companies that benefitted from lower bond yields. Bank stocks and energy companies fell, which muted the market’s overall gains. The S&P 500 index gained 0.4%. The Dow Jones Industrial Average rose 0.2% and the technology-heavy Nasdaq Composite climbed 1%. Stocks have benefited this week from a cooling off in the bond market. Yields, which had been steadily ticking higher, have retreated from highs hit earlier in the month. The easing yields have taken some pressure off of technology stocks.

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    THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

    Stocks were moderately higher in afternoon trading Thursday, helped again by large technology companies that have benefitted from steady bond yields.

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    The easing of bond yields was taking some pressure off technology stocks, which have slipped over the last few months as yields jumped and made the shares look pricey. The sector has also seen choppy trading as investors shift more money into companies that stand to benefit from the economic recovery.

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    The S&P 500 was up 0.4% as of 2:32 p.m. Eastern. The benchmark index was on track for its third all-time high this week. Technology stocks led the market higher, with some help from companies that rely on consumer spending. The gains were tempered by a slide in banks and energy companies. The Dow Jones Industrial Average rose 13 points, or less than 0.1%, to 33,459 and the Nasdaq gained 1%.

    The stock market has benefited this week from a cooling off in the bond market. Yields, which had been steadily ticking higher, have retreated from highs hit earlier in the month. The yield on the 10-year U.S. Treasury note fell to 1.64% from 1.65% late Wednesday. It had been as high as 1.75% on Monday.

    Tech stocks were the biggest benefactors, with Apple and Microsoft shares up more than 1%. Amazon also rose roughly 1%.

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    Investors are showing cautious optimism about the economic recovery, especially in the U.S., where vaccine distribution has been ramping up and President Joe Biden has advanced the deadline for states to make doses available to all adults to April 19.

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    But it’s clear the economy has much to do when it comes to recovery. The number of Americans who filed for unemployment benefits last week rose again last week, as many businesses remain closed or partially shut down due to the pandemic.

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    Much of the economy is recovering, but employment needs to pick up in order for a full recovery to occur, analysts say. The market will likely continue to be choppy as investors shift money to some of the sectors and companies hardest hit by the pandemic. They are also weighing signs of economic growth against the lingering threat of COVID-19.

    “We’re still at the mercy of the virus and the race between the virus and vaccines and getting a sense of the reopening of the economy,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

    The minutes revealed that Fed officials were encouraged last month by evidence the U.S. economy was picking up, but they showed no sign of moving closer to ending their bond purchases or lifting their benchmark short-term interest rate from nearly zero. Federal Reserve Chair Jerome Powell is speaking in front of the International Monetary Fund today and could give investors more color on what the Fed is thinking.

    Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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