Big Tech Leads US Stock Rebound; Boeing Tumbles: Markets Wrap

(Bloomberg) — A rally in big tech sent US stocks higher at the start of a week that will bring key inflation data and bank earnings.

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The Nasdaq 100 outperformed, with Nvidia Corp. surging after announcing new products to help the personal computer industry lure consumers with artificial-intelligence PCs. Boeing Co. sank as its 737 Max 9 model was temporarily grounded by authorities. Treasury yields fell alongside the dollar. Oil slid to around $70.

Equities rebounded after mixed US economic data capped a week that saw equities sink the most since October on bets the Federal Reserve was in no rush to cut rates.

“The valuation-led year-end rally pulled potential gains from 2024 into 2023, making this a tricky year to prognosticate — especially as data are becoming more mixed and futures markets show that Fed rate cuts are already factored in,” said Robert Teeter, managing director of Silvercrest Asset Management.

Corporate Highlights:

• A.P. Moller – Maersk A/S and Hapag-Lloyd AG denied any pact with Yemen’s Houthi rebels to facilitate the safe movement of vessels through the Red Sea.

• Lululemon Athletica Inc., Abercrombie & Fitch Co. and American Eagle Outfitters Inc. raised their sales outlooks on the back of a strong holiday quarter.

• Moderna Inc.’s product sales for 2023 modestly beat analyst estimates as it eked out a bigger US market share for Covid shots, though the biotech giant reiterated a downbeat outlook for the year ahead.

• Boston Scientific Corp. agreed to pay $71 a share in cash for medical technology firm Axonics Inc., a maker of devices to treat urinary and bowel dysfunction.

• Johnson & Johnson will pay $2 billion in cash to acquire Ambrx Biopharma Inc., gaining a developer of widely sought drugs that target tumors with lethal drugs.

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Key events this week:

• China aggregate financing, money supply, new yuan loans, Tuesday

• Eurozone unemployment, Tuesday

• Germany industrial production, Tuesday

• Japan Tokyo CPI, household spending, Tuesday

• US trade, Tuesday

• US wholesale inventories, Wednesday

• The World Economic Forum’s global risks report is released, Wednesday

• New York Fed President John Williams speaks, Wednesday

• US CPI, initial jobless claims, Thursday

• China CPI, PPI, trade, Friday

• UK industrial production, Friday

• US PPI, Friday

• Some of the biggest US banks report fourth-quarter results, Friday

• Minneapolis Fed President Neel Kashkari speaks, Friday

• ECB chief economist Philip Lane speaks, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.7% as of 12:17 p.m. New York time

• The Nasdaq 100 rose 1.4%

• The Dow Jones Industrial Average fell 0.2%

• The MSCI World index rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%

• The euro rose 0.3% to $1.0973

• The British pound rose 0.3% to $1.2761

• The Japanese yen rose 0.6% to 143.83 per dollar

Cryptocurrencies

• Bitcoin rose 2% to $45,149.01

• Ether rose 1.2% to $2,268.22

Bonds

• The yield on 10-year Treasuries declined seven basis points to 3.97%

• Germany’s 10-year yield declined two basis points to 2.14%

• Britain’s 10-year yield declined one basis point to 3.77%

Commodities

• West Texas Intermediate crude fell 4.6% to $70.42 a barrel

• Spot gold fell 0.7% to $2,031.71 an ounce

This story was produced with the assistance of Bloomberg Automation.

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