Tech drives Wall Street's surge but Treasury yields remain stable

 Tech drives Wall Street's surge but Treasury yields remain stable

Investors have been concentrating on monetary policy and benchmark Treasury yields, which have considerably decreased from 16-year highs. They are evaluating when the central bank may begin reducing rates as well as if the Fed may be finished hiking rates to combat inflation.

 

The Nasdaq increased by 2.4 percent, the S&P 500 gained 1.3 percent, and the Dow increased by around 0.7 percent for the week.

On November 10, Wall Street's main indexes closed higher than they started, driven by growth and heavyweight tech firms. Treasury rates also started to decline as investors anticipated the release of data on inflation and other economic factors the following week.

The largest percentage gain in a single day since May 26 was recorded by the tech-heavy Nasdaq Composite.

Following aggressive remarks on interest rates made by Federal Reserve Chair Jerome Powell the previous day, stocks recovered. The S&P 500 and the Nasdaq had their longest winning streaks in two years come to an end on November 9.

Investors have been concentrating on monetary policy and benchmark Treasury yields, which have considerably decreased from 16-year highs. They are evaluating when the central bank may begin reducing rates as well as if the Fed may be finished hiking rates to combat inflation.

Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana, declared, "We have had rates roll down here a little bit and I think that's one of the explanations as to why we have seen this rally over the last couple of weeks." "You had a chance yesterday to go buy some stocks today if you believe this rally has legs."

Interest rate forecasts will be further shaped by the consumer price index report, which will be carefully monitored the following week together with information on producer prices and retail sales.

According to Rick Meckler, a partner at Cherry Lane Ventures in New Vernon, New Jersey, "investors generally expect the upcoming inflation data to be positive for the market and I think they want it feels to get in front of it a little bit."

With the technology sector leading the way with a gain of 2.6 percent, all 11 S&P 500 sectors finished the day in the black. Megacap stocks, which have driven the market upward this year, had a strong increase on Friday as well. Microsoft increased by 2.5 percent, Meta Platforms by 2.6 percent, and Nvidia by around 3 percent.

Meckler said, "People have been looking at megacap tech as well as saying these companies remain the most appropriate ones to be and are capable of paying a premium for them in a climate of higher rates and a slowing economy."

The Nasdaq increased by 2.4 percent, the S&P 500 gained 1.3 percent, and the Dow increased by around 0.7 percent for the week.

The yield on the benchmark 10-year Treasury note, which supports stocks, hardly moved the day after rising, partially due to a lower-than-expected 30-year bond sale. It was at 4.62 percent.

According to data released on Friday, household expectations for inflation increased again in November, but consumer mood in the US declined for a fourth consecutive month.

In business news, the genetic testing firm Illumina's shares fell 8% after it lowered its full-year earnings projection for the second consecutive quarter.

On the NYSE, advances outweighed decliners by a ratio of 2.7 to 1. On the NYSE, there were 152 new lows and 70 new highs.

There were 2,589 rising issues on the Nasdaq compared to 1,658 declining stocks. There were 353 new lows and 61 new highs on the Nasdaq.

In US exchanges, 10.2 billion shares exchanged hands, down from the average daily volume of almost 11 billion for the previous 20 sessions.