by Chuck Mikolajczak
(Reuters) – The New York Stock Exchange ended higher on Tuesday, with the S&P-500 and Nasdaq recording their longest streak in the green in two years, as falling bond yields benefited high-growth stocks, in a context of optimism about the rate hike campaign.
The Dow Jones index gained 0.17%, or 56.94 points, to 34,152.80 points.
The broader S&P-500 gained 12.40 points, or 0.28%, to 4,378.38 points.
The Nasdaq Composite advanced 121.08 points (0.90%) to 13,639.86 points.
For the S&P-500, this is a seventh consecutive session of increase, and for the Nasdaq, an eighth session in a row – unprecedented series in two years. The Dow Jones finished in the green for a seventh day in a row, its longest streak since last July.
The yield on ten-year US Treasury bonds fell for the fifth time in six sessions, amid hopes that the US Federal Reserve (Fed) has completed the cycle of monetary tightening started in March 2022 to curb inflation.
While the Fed decided last week to keep its interest rates unchanged, a large majority of market participants believe that it will announce a pause again in December.
However, the hypothesis of further increases has not been completely ruled out by the markets, with representatives of the Fed having been cautious in recent days in their comments on the continuation of monetary policy.
The president of the Minneapolis Fed, Neel Kashkari, and his Chicago counterpart, Austan Goolsbee, notably refused to rule out the possibility of further raising rates. The President of the American central bank, Jerome Powell, is expected to speak on Wednesday and Thursday.
The main idea on Wall Street this Tuesday is “that the Fed has finished (its cycle of monetary tightening), but yesterday it was ‘maybe not'”, commented Ken Polcari, director of Kace Capital Advisors, at Boca Raton, Florida.
“What the market and traders are saying, what they are pushing for, is the end (of tightening), it is a rate cut, as if they are trying to force the hand” of the Fed, a- he added.
Among the major sectors of the S&P-500, energy was the worst performer, falling more than 2% in the wake of the decline in crude prices.
The decline in bond yields benefited technology giants like Amazon, up 2.1%, Microsoft, which gained 1.1%, and Apple, up 1.5%.
Uber Technologies rose 3.7% after reporting a better-than-expected adjusted profit forecast for the current quarter.
Datadog jumped 28% after raising its annual forecast.
( Jean Terzian)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.