The high-tech Wall Street nasdaq hits a third straight record

Nasdaq Composite, a high-tech on Wall Street, was heading for a record high for the third straight session on Thursday after a slump in the US central bank reduced the attractiveness of sectors whose fortunes were tied to economic growth. .

The Nasdaq rose 0.9% at lunchtime in New York, with shares of electric car maker Tesla and tech-capable fitness group Peloton gaining more than 5%. The broader S&P 500 rose 0.5 percent to a high as well.

Federal Reserve officials advanced their projections on the first post-pandemic interest rate hike in a year, causing the market to shrink last week. Since then, trade has calmed down after Fed Chairman Jay Powell said major obstacles remained to tighten monetary policy.

Investors have done the same they adjusted their portfolios be less dependent on economically sensitive value stocks in industries such as energy and banking that have dominated the growth of the equity market since drug manufacturers announced effective vaccines against Covid-19 last November.

“Markets are priced in an economic cycle that will be relatively shorter than previously expected,” said Bastien Drut, CPR Asset Management strategist, referring to the period between the recovery from the pandemic shock and the upcoming recession. .

Technology stocks and other so-called growth companies, whose valuations are influenced by estimates of future profits, have also been flattered by falling long-term government bond yields that set a marker on how much investors will pay for cash flows. business box. .

Fed officials ’forecasts last week lowered the prices of five-year Treasury bonds and raised those of 30-year bonds. The 30-year Treasury yield, which moves inversely to its price, fell from more than 2.2% last Wednesday to 2.09%.

“The breadth of this particular move for growth stocks has been very high,” said Roger Lee, research strategist.

Elsewhere, the pound sterling withdrew from its strongest level against the euro since early April after the Bank of England said its pandemic-era monetary policy “remained adequate”.

The BoE said the country would “experience a period of strong growth” and inflation above the target “after which growth and inflation will decline.”

The pound, which was trading at 1.17 euros ahead of the BoE’s monetary policy meeting on Thursday, lost 0.4 per cent against the single currency to 1.1664 euros. Against the dollar, the pound also fell 0.3% to $ 1.3912.

The London FTSE 100 index, which brings together exporters benefiting from a weaker pound, closed up 0.5%.

The yield on the ten-year UK government bond, which moves inversely to its price, fell 0.04 percentage points to 0.74%.

In Europe, the Stoxx Europe 600 stock index rose 0.9% after the Ifo Institute’s business climate index rose to a higher-than-expected reading of 101.8 in June, from 99.2 last month, which shows the optimism among the heads of companies in Germany, the economic center of the euro area. Frenchman Xetra Dax also finished the session up 0.9%.

Brent crude, the world’s leading oil company, rose 0.2 percent to $ 75.33 a barrel.