S&P 500 and Nasdaq Composite Rally with Extended Winning Streak
On Wall Street, a consistent decline in Treasury yields has provided a boost to the stock market, leading to notable gains on Tuesday.
The S&P 500 index marked its seventh consecutive day of gains, the longest such streak since November 2021, mirroring a similar trend for the Nasdaq Composite.
The Dow Jones Industrial Average saw a modest increase of 57 points, or 0.2%, while the S&P 500 rose by 0.3% and the Nasdaq Composite outperformed with a gain of 0.9%.
The retreat in Treasury yields, particularly the 10-year note which has decreased from its October peak of 5%, continued as the market digested optimistic views from Federal Reserve officials. Chicago Fed President Austan Goolsbee's statement, indicating a possibility for inflation reduction without a recession, further influenced the market's trajectory.
This pullback in yields follows the Federal Reserve's decision to pause interest rate hikes in November and a labor report that was less robust than anticipated, fueling speculation that the Fed may halt rate increases. This speculation has contributed to a stock market rally this month, a sharp contrast to the S&P 500's record of consecutive monthly declines since 2020. The month of November traditionally brings favorable seasonal trends for investors.
Tuesday saw the 10-year Treasury yield settle at 4.57%, down from 4.66% the previous day.
Tech stocks enjoyed an uptick, spurred by the falling yields. Microsoft's shares reached a new high, while Amazon, Meta Platforms, and Apple also experienced gains.
Conversely, energy stocks took a hit following reports of a significant drop in China's exports, affecting oil prices. West Texas Intermediate crude futures closed at $77.37 a barrel, causing shares of energy companies like Halliburton, Chevron, and ExxonMobil to decline.
Uber's stock, however, surged 3.7% despite third-quarter earnings and revenue falling short of expectations, bolstered by positive gross bookings guidance for the fourth quarter.
Datadog's shares soared by 28.5% after the company not only beat third-quarter expectations but also upgraded its forecast for the full year.
Investors now await Federal Reserve Chair Jerome Powell's comments, scheduled for Wednesday and Thursday, which could provide further direction for the market.
As the trading day comes to a close and the stock market settles, final figures may undergo slight adjustments.