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Tech Shares Rise as U.S. Stocks Whipsaw Investors: Markets Wrap


(Bloomberg) — Technology shares were one of the few bright spots in U.S. equity markets as worrying increases in coronavirus cases whipsawed investors. Treasury yields were mixed and the dollar pushed higher.

The Nasdaq Composite gained for a fourth day, led by increases in Apple and Microsoft. The benchmark S&P 500 Index swung between gains and losses, with the energy, utilities and financial sectors falling as infections increased from China to Brazil and Iran warned it may need a new lockdown. Texas posted an increase in hospitalizations.

“Volatility is for sure here to stay and probably through the end of the year,” said Michael Reynolds, investment strategy officer at Glenmede Trust. “We’re dealing with something that is not economic in nature, anyone who thinks they can predict the path of this virus is surely kidding themselves.”

While volume was 27% below the 30-day average Wednesday, trading has been volatile for the past two weeks. After rising to a 12-week high on June 8, the S&P 500 tumbled 7% over three days before staging a 4% rebound in the next three sessions.

Investor optimism toward risk assets had been reflected in bets that new virus outbreaks won’t lead governments to pull back from gradually reopening businesses. Federal Reserve Chairman Jerome Powell said the U.S. economy has a long way to go before it reverses the substantial damage done by the pandemic.

“Global markets could remain stretched between a health situation likely to remain a threat in several regions for some time on the one hand, and a stream of positive macro figures confirming that we have passed the low point on the other,” said Xavier Chapard, a global macro strategist at Credit Agricole.

Texas reported an 11% surge in virus hospitalizations, the biggest 24-hour increase since June 4. Brazil registered a record 34,918 new infections, while China is escalating containment measures in Beijing including canceling flights.

Elsewhere, crude oil futures declined, after two sessions of advances.

These are some key events coming up:

Policy decisions from the Bank of England and the Swiss National Bank are due on Thursday.

These are some of the main moves in markets:

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