Advances In Tech Stocks Extend Longest Rally In Two Years

Barry Adams
09 Nov, 2023
New York City

Stocks continued to advance after bond yields extended recent declines and crude oil edged lower.

The S&P 500 index extended gains to the ninth session in a row, and the Nasdaq Composite edged higher for the tenth consecutive day after interest rate uncertainties receded.

Market participants bid up high-growth and tech stocks after the Federal Reserve held short-term rates for the second time in a row.

The move also sparked speculation that policymakers will keep rates steady at the next policy meeting in December, supporting rate stability.

Investors wasted no time in bidding up stocks, and the Nasdaq Composite and the S&P 500 index soared more than 5% in the previous and extended gains this week.

Moreover, softer nonfarm payroll data last week also supported the Fed's case for stable rates and reviewed the cumulative effect of multiple rate hikes since March 2022.

On the economic front, initial jobless claims declined to 217,000 last week, down from the two-month high of 220,000 in the week before, reported the U.S. Department of Labor on Thursday.

 

U.S. indexes and Yields

The S&P 500 index increased 0.04% to 4,383.51, and the Nasdaq Composite increased 0.05% to 13,651.09.

The yield on 2-year Treasury notes increased to 4.96%, 10-year Treasury notes inched higher to 4.54%, and 30-year Treasury bonds edged down to 4.68%.

Crude oil decreased $0.94 to $76.26 a barrel, and natural gas prices rose 2 cents to $3.07 a thermal unit.

Gold increased $4.54 to $1,954.86 an ounce after bond yields edged lower and the dollar weakened.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.52.

 

U.S. Stock Movers

Lyft declined 3.3% to $10.30 after the digital ride hailing company reported weaker-than-expected quarterly results and guided that weak bookings are expected to persist in the current quarter.

Disney jumped 4.3% to $88.12 after the theme park operator and media company reported better-than-expected quarterly results.

Disney also said it plans to expand its cost reduction plans.

Arm dropped 6.2% to $51.0 after the advanced semiconductor chip maker reported mixed quarterly results and offered a muted outlook for the current quarter.

MGM Resorts advanced 3% to $39.85 after the hotel and casino operator reported better-than-expected quarterly results and the company announced its stock repurchase plan.