We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed sharply higher on Thursday, led by a rally in tech stocks. Yield on the benchmark 10-year U.S. Treasury Note declined, rendering a rally in large-cap growth stocks. Investors eagerly await Fed chair Jerome Powell’s speech slated for Friday to get a hang of what is in store. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 322.55 points, to close at 33,291.78. Twenty-seven components of the 30-stock index ended in the positive territory, two ended in the negative, while one remained unchanged.
The tech-heavy Nasdaq Composite went up by 207.74 points or 1.7% to 12,639.27.
The S&P 500 rose 1.4%, or 58.35 points, to end at 4,199.12. All the 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) rose 2.3%, 2% and 1.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 4.6% to 21.78. A total of 9.3 billion shares were traded on Thursday, lower than the last 20-session average of 10.8 billion. Advancers outnumbered decliners on the NYSE by a 3.84-to-1 ratio. On the Nasdaq, a 2.08-to-1 ratio favored the advancing issues.
10-Year Treasury Yield Goes Down Sharply
The yield on the benchmark 10-year treasury note dropped nearly 8 basis points to 3.031% on Thursday. It had climbed above the 3% level for the first time in a month earlier this week. Lower yields from risk-free treasury bonds indicate future flows are profitable in the current valuation, especially for large-cap growth stocks like tech stocks, and move in the opposite direction with prices. Investors will closely watch the economic symposium at Jackson Hole, which is expected to deliver an indication of the Fed’s position on the extent of further rate hikes needed to combat inflation. Further talks of rate hikes will push bond yields higher, but in the interim, growth stocks flourished on Thursday.
Investors are eagerly awaiting Jerome Powell's speech on Friday at the Wyoming symposium to understand how aggressive the Fed will be when it goes for the next interest rate hike in September. Powell is expected to reinforce Fed’s commitment to hard-tackling inflation by tightening the monetary policy even further. Market participants remain apprehensive that this can slow down the economy. Friday is also the day when the PCE Inflation data will be released. Being the Fed’s key yardstick for gauging inflation, it may have a bearing on what Powell has to say.
Economic Data
The Labor Department said on Thursday that initial jobless claims fell to 243,000, decreasing 2,000 for the week ending Aug 20. The previous week's level was revised down by 5,000 from 250,000 to 245,000. The four-week moving average increased to 247,000, a rise of 1,500 from the previous week’s revised average of 245,500.
Continuing claims came in at 1,415,000 for the week ending Aug 13, decreasing 19,000 from the previous week’s revised level. The previous week's numbers were revised down by 3,000 from 1,437,000 to 1,434,000. The 4-week moving average came in at 1,424,750, an increase of 12,500 from the previous week's revised average. The previous week's average was revised down by 750 from 1,413,000 to 1,412,250.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Aug 26, 2022
Wall Street closed sharply higher on Thursday, led by a rally in tech stocks. Yield on the benchmark 10-year U.S. Treasury Note declined, rendering a rally in large-cap growth stocks. Investors eagerly await Fed chair Jerome Powell’s speech slated for Friday to get a hang of what is in store. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 322.55 points, to close at 33,291.78. Twenty-seven components of the 30-stock index ended in the positive territory, two ended in the negative, while one remained unchanged.
The tech-heavy Nasdaq Composite went up by 207.74 points or 1.7% to 12,639.27.
The S&P 500 rose 1.4%, or 58.35 points, to end at 4,199.12. All the 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) rose 2.3%, 2% and 1.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 4.6% to 21.78. A total of 9.3 billion shares were traded on Thursday, lower than the last 20-session average of 10.8 billion. Advancers outnumbered decliners on the NYSE by a 3.84-to-1 ratio. On the Nasdaq, a 2.08-to-1 ratio favored the advancing issues.
10-Year Treasury Yield Goes Down Sharply
The yield on the benchmark 10-year treasury note dropped nearly 8 basis points to 3.031% on Thursday. It had climbed above the 3% level for the first time in a month earlier this week. Lower yields from risk-free treasury bonds indicate future flows are profitable in the current valuation, especially for large-cap growth stocks like tech stocks, and move in the opposite direction with prices. Investors will closely watch the economic symposium at Jackson Hole, which is expected to deliver an indication of the Fed’s position on the extent of further rate hikes needed to combat inflation. Further talks of rate hikes will push bond yields higher, but in the interim, growth stocks flourished on Thursday.
Consequently, shares of Amazon.com, Inc. (AMZN - Free Report) and Alphabet Inc. (GOOGL - Free Report) both advanced 2.6%. Each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Powell’s Speech at Jackson Hole Eagerly Awaited
Investors are eagerly awaiting Jerome Powell's speech on Friday at the Wyoming symposium to understand how aggressive the Fed will be when it goes for the next interest rate hike in September. Powell is expected to reinforce Fed’s commitment to hard-tackling inflation by tightening the monetary policy even further. Market participants remain apprehensive that this can slow down the economy. Friday is also the day when the PCE Inflation data will be released. Being the Fed’s key yardstick for gauging inflation, it may have a bearing on what Powell has to say.
Economic Data
The Labor Department said on Thursday that initial jobless claims fell to 243,000, decreasing 2,000 for the week ending Aug 20. The previous week's level was revised down by 5,000 from 250,000 to 245,000. The four-week moving average increased to 247,000, a rise of 1,500 from the previous week’s revised average of 245,500.
Continuing claims came in at 1,415,000 for the week ending Aug 13, decreasing 19,000 from the previous week’s revised level. The previous week's numbers were revised down by 3,000 from 1,437,000 to 1,434,000. The 4-week moving average came in at 1,424,750, an increase of 12,500 from the previous week's revised average. The previous week's average was revised down by 750 from 1,413,000 to 1,412,250.