Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File photo Obtaining license rights
Nov 8 (Reuters) – The S&P 500 on Wednesday weighed recent comments from Federal Reserve officials seeking signals on interest rate trends and focused on the direction of U.S. Treasury yields. Seeds and the Nasdaq posted modest gains to extend their recent winning streaks.
U.S. Treasuries have been on the rise since the benchmark 10-year Treasury rose above 5% in late October, as comments from Fed officials and weak labor data led to increased belief that the central bank had reached the end of its rate-hike cycle. Yields are plummeting.
The decline spurred stock gains, with the S&P 500 (.SPX) and Nasdaq (.IXIC) posting their longest streaks of gains in two years through Wednesday’s closes of eight and nine sessions, respectively.
Markets are pricing in a roughly 50% chance of a rate cut of at least 25 basis points as early as May, according to CME Group. fedwatch toolup from about 41% a week ago.
Still, comments from several central bank officials over the past few days have left open the possibility of further rate hikes, creating some uncertainty among investors.
“Everyone knows it’s either going to be another rate hike or it’s done, and it’s probably done,” said Jason Ware, chief investment officer at Albion Financial Group. I will.”
“If there’s a recession, stock valuations change and earnings look different. If not, we’re probably in another early-stage bull market situation here.”
“That’s the question investors will be asking themselves as they monitor yields. Information on yields and recession-related economic data available between now and the end of the year will move the tape. ”
The Dow Jones Industrial Average (.DJI) fell 40.33 points (0.12%) to 34,112.27. The S&P 500 (.SPX) rose 4.40 points, or 0.10%, to 4,382.78. The Nasdaq Composite Index (.IXIC) added 10.56 points (0.08%) to 13,650.41.
The Dow’s decline ended the winning streak at seven.
Meanwhile, Federal Reserve Chairman Jerome Powell did not comment on monetary policy in his opening remarks at Wednesday’s U.S. central bank statistical conference. He is scheduled to speak at another conference on Thursday.
Longer-term bond yields fell the day after the $40 billion bid, and the 10-year Treasury yield also fell as analysts saw it as acceptable given its size.
Shares of Eli Lilly (LLY.N) rose 3.2% after the U.S. Food and Drug Administration approved the drugmaker’s weight loss treatment.
On the profit front, media and entertainment conglomerate Warner Bros. Discovery (WBD.O) has seen a decline in its peers after it announced that Hollywood strikes and a weak advertising market could negatively impact its 2024 revenue. Warner Bros. Discovery (WBD.O) plunged 19%, weighing on Paramount Global (PARA.O).
Take-Two Interactive Software (TTWO.O) jumped 5.2% after the company announced it would release a trailer for the latest installment in its best-selling Grand Theft Auto video game series early next month. .
Electric vehicle maker Lucid Group (LCID.O) fell 8.1% after lowering its production outlook.
On the New York Stock Exchange, declining issues outnumbered advancing issues by a 1.3 to 1 ratio, while on the Nasdaq, declining issues outnumbered advancing issues by a 1.7 to 1 ratio.
The S&P 500 recorded 17 new highs and eight new lows in 52 weeks, while the Nasdaq recorded 53 new highs and 206 new lows.
Trading volume on U.S. exchanges was 10.27 billion shares, compared to an average of 10.95 billion shares traded over the past 20 trading days.
Reporting by Chuck Mikolajczak.Editing: Richard Chan
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