NEW YORK, March 22 Reuters Wall Street rallied on Monday as technology stocks rebounded from a recent selloff sparked by surging bond yields and Tesla jumped after a fund run by an influential investor in the electriccar maker said its shares could approach 3,000 by 2025.
Tesla Incs gain provided one of the biggest boosts to the SP 500 and Nasdaq after Ark Invest, founded by star stockpicker Cathie Wood, raised its price target on Friday using 34 inputs in a Monte Carlo model.
Growth stocks rose more than 1 while value shares traded near breakeven in a reversal of this years big rotation in investment portfolios.
A sharp runup in Treasury yields since midFebruary has weighed on highflying technology stocks that benefit from low yields as investors swarmed into underpriced value stocks from the megacap growth stocks that have fueled the past years rally.
An easing off of 14month highs in the 10year U.S. Treasury notes yield after it hit 1.754 last week has allowed tech shares to bounce back, said Tom Hayes, chairman of hedge fund Great Hill Capital LLC in New York.
Its going to look like tech and growth is back but I think it will be much more moderate than people think, Hayes said. Theres a plethora of growth, growth across many sectors, and weve seen managers bidding those shares up in cyclicals and value. I think that persists over the next 18 months, he said.
The techheavy Nasdaq outpaced the SP 500 and the Dow, both of which posted alltime highs last week on…