Global Tech Stocks Continue to Rise Despite Increasing Interest Rates
Global tech stocks kicked off the week on a positive note, defying the trend of rising interest rates. The Nasdaq Composite led the charge, while industrial indices lagged behind. Analysts believe that the momentum seen at the start of the week suggests the path of least resistance for tech stocks.
Jeff Schulze, head of economic and market strategy at ClearBridge Investments, expressed his views on the current market situation, stating that while there may be positive impulses for markets and cyclicals, the rise in the 10-year Treasury yield could ultimately weigh on valuations and put downward pressure on the markets as the week progresses.
In the United States, the Dow Jones Industrial Average experienced a slight dip of -0.11%, closing at 34,463.69 points. In contrast, the NASDAQ Composite performed exceptionally well, recording a significant gain of 1.56% to finish at 13,497.59 points. The S&P 500 also saw an uptick, closing at 4,399.77 points with a rise of 0.69%.
Meanwhile, Canada’s S&P/TSX Composite index faced a modest decrease of -0.17%, ending the day at 19,784.87 points. The FTSE 100 index in the United Kingdom concluded with a marginal decline of -0.06% at 7,257.82 points.
In Europe, the major indices displayed mixed movements. The ESTX 50 PR.EUR representing the Eurozone closed with a minor gain of 0.28% at 4,224.87 points. The Euronext 100 Index ended the day at 1,333.45 points, up 0.37%. Germany’s DAX PERFORMANCE-INDEX saw modest growth of 0.19%, closing at 15,603.28 points. France’s CAC 40 also demonstrated positive momentum, closing at 7,198.06 points, up 0.47%. Belgium’s BEL 20 index closed at 3,596.34 points, marking an increase of 0.48%.
In Asia, Japan’s Nikkei 225 index experienced a minor gain of 0.37%, closing at 31,565.64 points. However, the Hang Seng Index in Hong Kong faced a notable setback, concluding the day at 17,623.29 points, down 1.82%. China’s SSE Composite Index closed in the red, ending the day at 3,092.98 points, down 1.24%. Similarly, China’s Shenzhen Index experienced a decrease of 1.32%, closing at 10,320.39 points. Australia’s S&P/ASX 200 index closed at 7,115.50 points, down 0.46%. Singapore’s STI Index declined by 0.63% to close at 3,154.03 points. South Korea’s KOSPI Composite Index closed at 2,508.80 points, up 0.17%.
In the global foreign exchange market, the US dollar displayed strength against the euro, Japanese yen, and British pound, while facing some weakness against the Canadian dollar and Swiss franc. The Australian dollar and New Zealand dollar made modest gains against the greenback.
As global markets continue to display a range of movements, analysts are closely monitoring economic indicators and geopolitical developments for potential market impacts in the coming days.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in the stock market involves risks, and individuals should conduct thorough research and seek professional guidance before making any investment decisions.
