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Technology stocks on Wall Street returned to growth on Wednesday

The technology stocks on Wall Street returned to growth on Wednesday thanks to a good performance on Facebook. The rest of the market, however, remained virtually unchanged while investors are expecting new information on the final tax reform project in the US. The Nasdaq Composite index rose by 0.2% after Facebook shares appreciated by almost 2%. Evercore ISI gave the company an “outperform” rating, and analysts said that Facebook will lead the shares in FANG (Facebook, Amazon, Netflix, Google) in 2018.

The main S&P 500 closed almost unchanged, retreating by only 0.01% to 2,629.27 points. The information technology sub-index recorded growth of 0.8% and the energy sub-index lost 1.3% against the backdrop of cheaper oil. The technological stocks rose again after the pressure last week.

The blue-chip index Dow Jones Industrial Average fell by 38 points (-0.16%) to 24,140.91 points, although Microsoft shares rose 1.5%.

The investors are following Washington, awaiting new details of the negotiations regarding the US Congress’s reform of tax code. The Republican draft law was passed on Saturday, increasing the chances of reform, which will significantly lower corporate taxes this year. However, the Senate project is different from the one approved by the House of Representatives. The two Chambers will now have to develop a joint project to be sent to the White House.

The expectations for tax reform support US markets throughout the year, leading them to record highs. But lately, the rally slows down. The S&P 500 and Nasdaq have entered a series of three consecutive losses on Tuesday, which is the first since August.

In the bond market, government bond yields declined after employment and production data suggesting an expansion of the economy and a tight labor market. The return on 10-year government securities declined to 2.324%, and two-year government bonds to 1.802%.

On the commodity market, the crude oil has fallen by more than 2% after a sharp increase in US reserves has shown that demand may be weakening. At the same time, the production in the country hit a new weekly record. The futures on US crude WTI fell by 1.66 USD during the session, or 2.88%, to 55.96 USD per barrel, while Brent oil fell by by 1.63 USD, or 2.6%, to 61.22 USD per barrel.

Futures on gold rose 0.17% to 1,267.10 USD per ounce.

About James McGovern

James McGovern is from Arizona, USA. He is business analyst and writer at Finance Apprise Journal, responsible for finance and trading sections, as well as news from USA and Canada.

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