David Tepper, billionaire investor and one of the world’s top hedge-fund managers, said that market participants can chill the f out because Japan could soon be a renewed buyer of U.S. government bonds following a sizable jump in yields. That would serve to stabilize a run-up in yields that has unsettled investors, as yields and bond prices move in opposite directions.
Tepper, the founder of Appaloosa Management and the owner of the Carolina Panthers of the National Football League and Charlotte FC in Major League Soccer, has one of the strongest track records among active investors, and his remarks often move markets.
A surge in Treasury yields tied to predictions that an aggressive round of fiscal stimulus combined with a broader reopening of the economy will boost inflation has helped fuel a powerful rotation away from highflying growth-oriented stocks, including tech-related names, into more cyclically sensitive stocks and sectors.
The Dow Jones Industrial Average ended with a gain of 306.14 points, or 1%, after jumping more than 650 points at its all-time high earlier in the session. The S&P 500 gave up a modest rise to slip 0.5%. And the tech-heavy Nasdaq Composite remained under pressure, falling 2.4% to enter correction territory, which is defined as a fall of 10% from a recent peak. With Monday’s dip, the Nasdaq has retreated 10.5% from a record close of 14,095.47 set on February 12.