S&P 500 top movers: Microchip Tech shares surge higher on upbeat price forecasts

• S&P 500 gains more than 1% on Wednesday.
• Financial Index rises sharply on surging Treasury bond yields.
• Microchip Technology Inc shares post strong gains on upbeat price forecasts.

Major equity indexes in the US started the day higher on Wednesday boosted by the better-than-expected macroeconomic data releases. The ADP Employment Change came in at -2.76 million in May to beat analysts' estimate of -9 million and the ISM Non-Manufacturing PMI improved to 45.4 from 41.8.

As of writing, the Dow Jones Industrial Average was up 1.5% on the day, the S&P 500 was gaining 1.05% and the Nasdaq Composite was rising 0.15%.

Among the 11-major S&P 500 sectors, the Financials Index is up 3.7% as the top-performer boosted by a more-than-10% increase in 10-year US Treasury bond yields.

S&P 500 top movers

Earlier in the day, Citigroup announced that it raised its price target for Microchip Technology Inc (MCHP) tp $120 from 103. Similarly, investment banking and asset management firm Needham & Company said that they also have raised their price forecast for MCHP to $130 from $100. Supported by these announcements, MCHP is up nearly 12% on the day at $108.30.

On the other hand, despite raising its 2020 revenue forecasts on strong sales during the coronavirus outbreak, Campbell Soup Co (CBP) is down 6.4% on the day as the top-decliner. The dismal demand outlook seems to be weighing on CBP shares. According to Reuters, an executive for the company during a conference call said that they have seen some slowdown in recent weeks in consumption and demand.