Tech Leads Stock Rebound Before Big Options Day: Markets Wrap

(Bloomberg) -- Stocks rose in a volatile session ahead of Friday’s options expiration, which is forecast to be the second-biggest in recent history.

Tech shares drove a rebound in equities as giant chipmaker Nvidia Corp. boosted its outlook. Apple Inc. jumped after Bloomberg News reported the company is pushing to accelerate the development of its electric car. Macy’s Inc. and Kohl’s Corp. paced gains in retailers after signaling consumer demand remains robust. The Dow Jones Industrial Average underperformed as Cisco Systems Inc., the biggest maker of computer networking equipment, gave a lackluster projection.

The next six months could see the S&P 500 hitting 5,200 in an environment of reduced monetary stimulus and outperformance by cyclical companies, according to UBS Global Wealth Management. That would imply an 11% rally from Wednesday’s close. 2022 is expected to be a year of two halves -- the first marked by high rates of economic growth and inflation and the second by lower growth and reduced price pressures, said Mark Haefele, chief investment officer at the bank.

“U.S. equity markets remain in record-high territory as strong consumer demand continues to offset supply side constraints and inflation concerns,” said Craig W. Johnson, technical market strategist at Piper Sandler. “Monetary policy remains accommodative and despite the recent uptick in volatility, interest rates remain historically low. The technical setup remains bullish.”

Some other corporate highlights:

Mortgage costs are on the rise once again. The average fixed rate on a 30-year mortgage has surged to 3.10%, up from 2.98% last week and the highest since Oct. 28, Freddie Mac said Thursday.

JPMorgan Chase & Co. economists said they now expect the Federal Reserve to raise interest rates next September, becoming the latest on Wall Street to jettison a forecast for the central bank to stay on hold through 2022. Goldman Sachs Group Inc. analysts said last month they expect a Fed hike in July. Their counterparts at Morgan Stanley still see officials not shifting rates throughout next year.

What to watch this week:

• Fed’s Richard Clarida and Mary Daly speak at Asia Economic Policy Conference. Friday

For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 1 p.m. New York time
• The Nasdaq 100 rose 0.8%
• The Dow Jones Industrial Average fell 0.2%
• The MSCI World index was little changed

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.5% to $1.1370
• The British pound was little changed at $1.3498
• The Japanese yen fell 0.1% to 114.25 per dollar

Bonds

• The yield on 10-year Treasuries was little changed at 1.58%
• Germany’s 10-year yield declined three basis points to -0.28%
• Britain’s 10-year yield declined four basis points to 0.92%

Commodities

• West Texas Intermediate crude rose 0.4% to $78.69 a barrel
• Gold futures fell 0.4% to $1,865.30 an ounce

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