US Stocks Close Mixed With Tech Sector Under Pressure

NEW YORK, Apr 10 (Xinhua) — The US stock market ended mixedly on Monday. Rising US Treasury yields weakened the tech sector.

Leading indices rallied from opening lows as investors returned from the holiday weekend and digested US nonfarm payrolls data released last Friday.

Two-year government bond yields rose 5 basis points to close at 4.016% on Monday, weighing on tech stocks.

The U.S. nonfarm sector added 236,000 jobs in March, below market expectations of 240,000, and the number of new nonfarm jobs was revised to 326,000 from 311,000, according to data released by the Labor Department.

Notably, the US unemployment rate fell to 3.5% in March from 3.6% the previous month.

Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services, said the key takeaway from the non-farm payrolls report is that while the labor market is slowly softening. , that the Federal Reserve will not be fast enough to keep interest rates up.

The S&P 500 has rebounded from session lows, said Vladimir Zernov, an analyst at market information firm FX Empire.

The Dow Jones Industrial Average rose 101.23 points (0.30%) to 33,586.52. The S&P 500 rose 4.09 points (0.10%) to 4,109.11. The Nasdaq Composite Index fell 3.60 points (0.03%) to 12,084.36.

Six of the S&P 500’s 11 major sectors are green, with industrials and energy up 0.9% and 0.65% respectively. Meanwhile, the telecommunications and utilities sectors saw the biggest declines, dropping 0.69% and 0.2% respectively.

U.S. stocks are weakening as investors expect another 0.5 percentage point rate hike by the Fed to be confirmed in the next inflation report, Moya said.

The US is due to release its latest consumer and producer price indexes for March on Wednesday and Thursday respectively.