US close: Tech shares lead a positive session

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Wall Street indices closed higher after a positive session on Wednesday, with the tech sector leading the way as banking sector fears took a back seat.

The Dow Jones Industrial Average gained 1% to close at 32,727.60, while the S&P 500 rose 1.42% to 4,027.81.

The technology-heavy Nasdaq Composite was ahead 1.79%, ending the day at 11,926.24.

In the currency space, the dollar was last down 0.01% against sterling at 81.2p, while it was unchanged on the euro at 92.22 euro cents.

It slipped 0.1% against the yen, meanwhile, to change hands at JPY 132.73.

“Stocks have made further gains today after a mixed session yesterday, and the continued absence of any fresh banking crisis is another big tick in the risk-on column,” said IG chief market analyst Chris Beauchamp earlier.

“Oil continues to clamber back from the March lows, but it is far from clear whether this short-covering rebound can be sustained in the medium-term.

“Demand forecasts haven’t really picked up, and with no sign of any production cuts coming the overall bearish environment still seems to prevail for now.”

Housing market showing signs of recovery

In economic news, the US housing market showed signs of continued strength this week, with both mortgage applications and pending home sales rising.

According to data from the Mortgage Bankers Association of America, mortgage applications increased 2.9% in the week ended 24 March, marking the fourth consecutive week of increases and the longest winning streak in four years.

The rise was driven by a 4.8% increase in applications to refinance a home loan and a 2% increase in applications to purchase a home loan.

Meanwhile, pending home sales unexpectedly rose in February, growing for the third consecutive month, according to data from the National Association of Realtors.

The index for pending home sales ticked up by 0.8% on the month, exceeding expectations for a 2.3% decline.

However, on a year-over-year basis, pending home sales fell by 21.1%.

Regionally, the Northeast saw the biggest monthly gain in pending home sales, rising by 6.5% to 72.5, but was down 17% from February 2022.

The Midwest saw a modest monthly increase of 0.4% to 84.9, but was down 16.5% from last year.

The South also posted a monthly increase of 0.7% to 99.3, but was down 21.7% on a year-over-year basis.

Finally, the West index fell by 2.4% on the month to 64.6, and was down 28.4% from last year.

“After nearly a year, the housing sector’s contraction is coming to an end,” said NAR chief economist Lawrence Yun.

“Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”

Yun explained that the more affordable US regions - the Midwest and the South - were leading the recovery.

“Mortgage rates have improved in recent weeks after the federal government guaranteed the status of most mortgages amidst uncertainty in the financial market.

“While access to commercial mortgage loans could become increasingly difficult, residential mortgage loans are expected to be more readily available.”

Lululemon surges, technology plays finish higher

In equities, Lululemon Athletica soared 12.72%, following its announcement that it had beaten adjusted earnings and revenue estimates.

Micron Technology also posted gains, closing up 7.19% after it reported better-than-expected second-quarter numbers.

Finally, luxury electric carmaker Lucid Group saw its shares rise 1.99%, after it announced late on Tuesday that it was planning to shed around 1,300 employees.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Intel Corp. (INTC) $31.52 7.61%
American Express Co. (AXP) $163.59 2.75%
Travelers Company Inc. (TRV) $169.79 2.40%
Salesforce.Com Inc. (CRM) $196.64 2.26%
Nike Inc. (NKE) $120.49 2.22%
Walt Disney Co. (DIS) $96.87 2.16%
Apple Inc. (AAPL) $160.77 1.98%
Microsoft Corp. (MSFT) $280.51 1.92%
Cisco Systems Inc. (CSCO) $51.17 1.55%
Boeing Co. (BA) $207.97 1.47%