Market Commentary - Foreign Markets
Tech stocks lifted the Nasdaq while biotech and pharmaceutical shares dragged markets. U.S. manufacturing contracted and bond yields fell to a four-month low.
The tech-heavy Nasdaq eventually ended the day firmly positive, jumping 150.60 points or 0.9% to 17,449.89. The S&P 500 also climbed 21.22 points or 0.4% to 5,633.07, but the narrower Dow edged down 11.80 points or less than a tenth of a percent to 41,989.96.
Institute for Supply Management released a report that showed activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion. It also said its manufacturing PMI dipped to 49 in March from 50.3 in February, with a reading below 50 indicating contraction.
Biotech stocks pulled back sharply, resulting in a 3.2% plunge by the NYSE Arca Biotechnology Index. Pharmaceutical stocks significantly moved downwards, dragging the NYSE Arca Pharmaceutical Index down by 2.8%. Healthcare and airline stock too were considerably weak on the day while software stocks turned in a strong performance, contributing to the advance by the Nasdaq.
Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index crept up by less than tenth of a% while China's Shanghai Composite Index and Hong Kong's Hang Seng Index both rose by 0.4%. The major European markets also moved to the upside on the day while the German DAX Index surged by 1.7%, the French CAC 40 Index jumped by 1.1% and the U.K.'s FTSE 100 Index climbed by 0.6%.
In the bond market, treasuries showed a strong upward move after ending the previous session little changed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled 9 bps to a nearly four-month closing low of 4.15%.
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