U.S. stocks rise as tech, energy stocks in demand

U.S. stocks rose Tuesday as investors rushed into technology names beaten down in a selloff as well as energy stocks riding a supply crunch.

U.S. stocks rose Tuesday as investors rushed into technology names beaten down in a selloff as well as energy stocks riding a supply crunch.

The S&P 500 and Nasdaq 100 gained amid a rally in tech heavyweights including Facebook Inc., which suffered large losses Monday after an outage on its social-media platforms. Energy stocks were also higher as oil prices in New York climbed for a fourth day. Treasuries fell with the yield on the 10-year note rising to 1.52 per cent

The gains helped ease concerns of a market correction in the near future as the S&P 500 has dipped below its 100-day moving average. A wall of worry continues to grow amid elevated inflation, fading recovery indicators, a spreading energy crisis and U.S. political bickering as investors prepare for the Federal Reserve to begin tapering stimulus.

“While some parts of the stock market have declined more than others, we still have a ways to go before reaching an actual correction in the major stock indexes,” said David Bahnsen, chief investment officer at Newport Beach, California-based wealth management firm The Bahnsen Group. “It is impossible to get overly worried about these incredibly modest market declines, which are mostly concentrated in highly overpriced technology stocks.”

The S&P 500 information technology sector is down more than 6 per cent from a high in August as rising inflation and Treasury yields has prompted a rotation out of high-growth companies trading at a premium. Meanwhile, the energy sector is up 18 per cent from a low in September as Europe braces for a winter energy crunch. European natural gas contracts soared on Tuesday to an unprecedented 114 euros per megawatt-hour, compared with 15.49 euros in February.