US Stock Market Overview – Stocks Close Higher Led by Technology, Energy Bucks the Trend
US stocks continue to trend higher. There continues to be inflow into dollar-denominated assets, which is buoying the greenback and buoying US stocks. US bonds have also been a beneficiary of the robust flow, moving down by 1.56%. Gold prices rose, helping to buoy metals and mining shares. Sectors in the S&P 500 index were mixed, led higher by technology shares which rose nearly 1%. Energy shares bucked the trend and were the worst-performing sector in the S&P 500 index.
Oil and gas producers led the energy sector lower as natural gas prices tumbled to 4-year lows, dropping nearly 5%. Oil prices were down approximately 1.5%, breaking through the $50 on WTI. CNBC conducted a survey over the weekend which showed that US growth could drop to 1.2% in the Q1 due to the effects of the coronavirus. The large-cap tech stocks continue to be the drivers behind the rise in US stocks.
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Microsoft, Amazon, Apple and Alphabet continued to be the driving force behind the rise in technology shares. In fact, more than 40 stocks in the S&P 500 index are in bear market territory. Most of the gains in the S&P 500 index has come in technology and communications.
CNBC Survey Says US Growth Could Drop in the Q1
US growth could decline significantly in the Q1 according to CNBC. A survey that CNBC conducted of 11 forecasters over the weekend finds first-quarter GDP estimates averaging just 1.2%, down nearly a point from the fourth quarter. Expectations are for a bounce back to 2% growth in the second quarter, depending on the severity of the virus both in China and in other countries.