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U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 56.74 points to close at 34,152.60 points, registering its longest winning streak since July 26, 2023.
The S&P 500 rose 0.3% or 12.40 points, to finish at 4,378.38 points, recording its longest winning streak since Nov 8, 2021. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each rose 1.1%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 0.9% or 121.08 points to end at 13,639.86 points, also notching its longest winning streak since Nov 8, 2021.
The fear-gauge CBOE Volatility Index (VIX) was down 0.54% to 14.81. A total of 10.8 billion shares were traded on Tuesday, lower than the last 20-session average of 10.94 billion. Decliners outnumbered advancers on the NYSE by a 1.2-to-1 ratio. On the Nasdaq, a 1.1-to-1 ratio favored declining issues.
Bond Yields Retreat, Tech Stocks Rally
The upbeat sentiment continued into Tuesday, which saw the Nasdaq and the S&P 500 rising for the eighth straight session, while the Dow climbed for the seventh straight day.
The benchmark 10-year Treasury note retreated further, declining for the fifth time in the past six sessions on expectations that the Fed is done with its monetary tightening cycle and another interest rate hike may not be implemented.
The 10-year Treasury yield which hit a 16-year high and crossed the 5% mark last month fell to 4.5% last Friday following the release of the jobs data. However, it rebounded slightly on Monday only to decline again on Tuesday to 4.57%.
\Oil prices also declined sharply on Tuesday, particularly the U.S. benchmark, which dropped below $80 a barrel after data from China raised concerns over demand. This is its lowest level since August. A decline in oil prices could further ease inflation worries and boost investors’ confidence.
Investors are also awaiting additional comments from Fed officials to get a clear picture of its next course of action with interest rates.
Economic Data
U.S. trade deficit rose once again in September to $61.5 billion or 4.9%. Total consumer credit climbed $9.1 billion in September after declining $15.8 billion in August.
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Stock Market News for Nov 8, 2023
U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 56.74 points to close at 34,152.60 points, registering its longest winning streak since July 26, 2023.
The S&P 500 rose 0.3% or 12.40 points, to finish at 4,378.38 points, recording its longest winning streak since Nov 8, 2021. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each rose 1.1%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 0.9% or 121.08 points to end at 13,639.86 points, also notching its longest winning streak since Nov 8, 2021.
The fear-gauge CBOE Volatility Index (VIX) was down 0.54% to 14.81. A total of 10.8 billion shares were traded on Tuesday, lower than the last 20-session average of 10.94 billion. Decliners outnumbered advancers on the NYSE by a 1.2-to-1 ratio. On the Nasdaq, a 1.1-to-1 ratio favored declining issues.
Bond Yields Retreat, Tech Stocks Rally
The upbeat sentiment continued into Tuesday, which saw the Nasdaq and the S&P 500 rising for the eighth straight session, while the Dow climbed for the seventh straight day.
The benchmark 10-year Treasury note retreated further, declining for the fifth time in the past six sessions on expectations that the Fed is done with its monetary tightening cycle and another interest rate hike may not be implemented.
The 10-year Treasury yield which hit a 16-year high and crossed the 5% mark last month fell to 4.5% last Friday following the release of the jobs data. However, it rebounded slightly on Monday only to decline again on Tuesday to 4.57%.
A decline in bond yields sent tech stocks on a rally. Shares of Salesforce, Inc. ((CRM - Free Report) ) jumped 2.1%, while Apple, Inc. ((AAPL - Free Report) ) and Microsoft Corporation ((MSFT - Free Report) ) rose 1.5% and 1.1%, respectively. Salesforce has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
\Oil prices also declined sharply on Tuesday, particularly the U.S. benchmark, which dropped below $80 a barrel after data from China raised concerns over demand. This is its lowest level since August. A decline in oil prices could further ease inflation worries and boost investors’ confidence.
Investors are also awaiting additional comments from Fed officials to get a clear picture of its next course of action with interest rates.
Economic Data
U.S. trade deficit rose once again in September to $61.5 billion or 4.9%. Total consumer credit climbed $9.1 billion in September after declining $15.8 billion in August.