(Adds market details and prices after close)
* Tesla gains on Ark's $3,000 price target by 2025
* Kansas City Southern surges on $25 bln buyout deal
* MSCI Turkey ETF sinks after central bank ouster
* Indexes rise: Dow up 0.32%, S&P 500 0.70%, Nasdaq 1.23%
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 electric-car maker said its shares
could approach $3,000 by 2025.
Tesla Inc's 2.31% gain to $670 was the
fourth-largest boost to the S&P 500 after Ark Invest, founded by
star stockpicker Cathie Wood, raised the company's price target
on Friday using 34 inputs in a Monte Carlo model.
Tesla traded more than 6% higher during the session before
Growth stocks rose more than 1.43% while value shares slid
0.07% in a reversal of this year's big rotation in investment
A sharp run-up in Treasury yields since mid-February has
weighed on high-flying technology stocks that benefit from low
yields as investors swarmed into underpriced value stocks from
the mega-cap growth stocks that have fueled the past year's
An easing off of 14-month highs in the 10-year U.S. Treasury
note's 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.
"It's going to look like tech and growth is back but I think
it will be much more moderate than people think," Hayes said.
"There's a plethora of growth, growth across many sectors, and
we've seen managers bidding those (shares) up in cyclicals and
value. I think that persists over the next 18 months," he said.
The tech-heavy Nasdaq outpaced the S&P 500
and the Dow, both of which posted all-time highs last
week on bets that stimulus and vaccine rollouts will likely lead
to the strongest U.S. economic growth since 1983.
"The technology stocks are pretty beaten down and it's not
shocking to see those rebounding a little bit from their lows,"
said Jake Wujastyk, chief market analyst and founding member of
Kansas City Southern surged 11.1% after Canadian
Pacific Railway Ltd agreed to acquire the railroad
operator in a $25 billion cash-and-stock deal to create the
first railway spanning the United States, Mexico and Canada.
The Dow Jones Industrial Average closed up 103.23
points, or 0.32%, at 32,731.2. The S&P 500 gained 27.49
points, or 0.70%, to 3,940.59 and the Nasdaq Composite
added 162.31 points, or 1.23%, to 13,377.54.
Volume on U.S. exchanges was 10.91 billion shares, compared
with the 14.3 billion average over the last 20 trading days.
Bank stocks, which have enjoyed a rally on
brightening economic prospects, dropped 2.27%.
The S&P 500 tech index jumped 1.93%, while energy
and financials closed down 1.01% and 1.30%,
The iShares MSCI Turkey ETF sank 18.96% after
President Tayyip Erdogan's decision to oust a hawkish central
bank governor sparked fears of a reversal of recent rate hikes.
Declining issues outnumbered advancing ones on the NYSE by a
1.18-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and no new lows; the
Nasdaq Composite recorded 99 new highs and 30 new lows.
(Reporting by Herbert Lash in New York, additional reporting by
Noel Randewich in San Francisco, and Medha Singh and Devik Jain
Editing by Saumyadeb Chakrabarty and Matthew Lewis)