Wall Street booms, fueled by technology, while Treasury keeps calm

  • Nasdaq records biggest daily jump since May 26th
  • All sectors of the S&P 500 close higher
  • Investors are looking forward to next week’s CPI
  • Illumina defaults due to annual profit forecast cut
  • Indices rise: Dow 1.15%, S&P 1.56%, Nasdaq 2.05%

Nov 10 (Portal) – Major Wall Street indexes ended with big gains on Friday, led by heavyweight technology and growth stocks, as Treasury yields calmed as investors looked to reports on inflation and others Economic data next week awaited.

The tech-heavy Nasdaq Composite (.IXIC) posted its biggest daily percentage gain since May 26.

Stocks rebounded from declines in the previous session, which followed hawkish comments on interest rates from Federal Reserve Chair Jerome Powell. Thursday’s decline ended the longest winning streak in two years for the S&P 500 (.SPX) and the Nasdaq.

Investors focused on benchmark Treasury yields, which have moderated slightly from their 16-year peak, and monetary policy as they gauge whether the Fed may be ready to raise interest rates to curb inflation , and when the central bank might start cutting interest rates.

“We’ve seen a slight increase in interest rates here, and I think that’s one of the reasons we’ve seen this rally over the last few weeks,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. “If you think this rally will continue, you had an opportunity yesterday to buy some stocks today.”

Next week’s Consumer Price Index report will be closely watched, along with data on producer prices and retail sales that will continue to shape interest rate forecasts.

“In general, investors are expecting the upcoming inflation data to be positive for the market, and I think they want to get a little ahead of it,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The Dow Jones Industrial Average (.DJI) rose 391.16 points or 1.15% to 34,283.1, the S&P 500 (.SPX) rose 67.89 points or 1.56% to 4,415.24 and the Nasdaq Composite (.IXIC) gained 276.66 points, up 2.05%, to 13,798.11.

The S&P 500 posted its highest close since September 19th.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. Portal/Brendan McDermid ACQUIRES LICENSE RIGHTS

All 11 S&P 500 sectors ended higher, led by a 2.6% gain for the technology sector (.SPLRCT). Megacap stocks that have driven the market higher this year also rose sharply on Friday. Nvidia (NVDA.O) rose about 3%, Meta Platforms (META.O) rose 2.6% and Microsoft (MSFT.O) rose 2.5%.

“People look at megacap technology and say these companies are still the best place to be in a higher interest rate environment and a slowing economy and are willing to pay a premium for it,” Meckler said.

For the week, the Dow rose about 0.7%, the S&P 500 gained 1.3% and the Nasdaq climbed 2.4%.

The yield on the benchmark 10-year Treasury note was little changed at 4.62% the day after a rise partly driven by a weaker-than-expected 30-year bond auction.

Data on Friday showed that U.S. consumer sentiment fell for the fourth straight month in November and household inflation expectations rose again.

In corporate news, shares of Illumina (ILMN.O) fell 8% as the genetic testing company cut its full-year profit forecast for the second consecutive day.

On the NYSE, advancing issues outnumbered declining issues by a ratio of 2.7 to 1. There were 70 new highs and 152 new lows on the NYSE.

On the Nasdaq, 2,589 advancing issues outnumbered declining issues by a 1.6-to-1 ratio on the Nasdaq. The Nasdaq posted 61 new highs and 353 new lows.

About 10.2 billion shares changed hands on U.S. exchanges, compared with the daily average of about 11 billion over the past 20 sessions.

Reporting by Lewis Krauskopf in New York, Amruta Khandekar and Shristi Achar A in Bengaulru; Edited by Maju Samuel and David Gregorio

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Shristi is a correspondent and part of the market team covering equity markets in the US, UK, Canada, Europe and emerging markets.

Originally posted 2023-11-11 00:52:12.