U.S. Major Averages Set to Advance for Fourth Consecutive Week

Barry Adams
24 Nov, 2023
New York City

Market indexes headed higher in early trading, and trading volume is expected to be thin as traders stayed away for the Thanksgiving holiday.

The S&P 500 index and the Nasdaq Composite are set to close higher for the fourth week in a row, the longest winning stretch since June.

Investors have been piling in stocks for the last six weeks in the hopes that the Federal Reserve is done raising rates for now.

Despite the multiple rate hikes totaling 500 basis points over the last eighteen months, the U.S. economy is still expanding at 2%, suggesting that rates are not restrictive enough.

The Federal Reserve is attempting to strike a delicate balance between moderate economic and job market growth and keeping inflation under control.

The yield on the 10-year Treasury drifted lower from the 2007 high reached in September above 5% and declined after three inflation reports showed inflation is cooling but still above the Fed's target rate of 2%.

In Wednesday's trading, the yield on 10-year Treasury bonds drifted just above 4.4%, and the yields edged slightly higher in Friday's trading.

Stock exchanges are scheduled to close at 1 p.m. ET after being closed Thursday for the Thanksgiving holiday.

 

U.S. Indexes and Yields

The S&P 500 index edged up 0.3% to 4,571.02, and the Nasdaq Composite increased 0.1% to 14,305.08.

For the week, the S&P 500 is up 0.9% and the Nasdaq Composite is up 1.0%. 

The yield on 2-year Treasury notes increased to 4.94%, 10-year Treasury notes inched higher to 4.46%, and 30-year Treasury bonds edged up to 4.59%.

Crude oil decreased $0.33 to $76.77 a barrel, and natural gas prices fell 5 cents to $2.86 a thermal unit.

Gold increased $3.70 to $1,995.53 an ounce after the U.S. dollar eased and worries of oil-driven inflation receded following the decline in oil prices.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.66.