S&P 500 and Nasdaq Composite 5-day Rally Extends Weekly Gains

Barry Adams
13 Sep, 2024
New York City

Stock market indexes traded higher and extended weekly gains as investors debated the future rate path and size of the possible rate next week. 

The S&P 500 index and the Nasdaq Composite edged higher and are set to advance for the fifth consecutive session in a row as investors doubled down rate-cut bets. 

The S&P 500 index is up 3.5%, and the Nasdaq Composite has advanced 5.3% this week as of market close on Thursday. 

Weakening of consumer price inflation in August boosted hopes of a rate cut, but the core inflation rate held steady at 2.8%, well above the Fed's target rate of 2%. 

Moreover, crude oil prices have been on the downward slide this year and dropped to this year's low below $66 a barrel, which could lower overall inflation in September. 

However, service inflation is above 3% and well-entrenched in the economy, indicating inflation is likely to stay near 3%. 

Investors are looking forward to the Fed's policy meeting on September 17 and 18, and the central bank is set to release its economic projections and inflation outlook. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.4% to 5,616.31, the Nasdaq Composite rose 0.3% to 17,626.01, and the Russell 2000 index rose 1.3% to 2,157.09. 

The yield on 2-year Treasury notes edged lower to 3.61%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.

WTI crude oil increased $0.79 to $69.77 a barrel, and natural gas prices edged up 4 cents to $2.40 a thermal unit.

Gold rose by $11.41 to $2,569.92 an ounce, and silver increased by $0.16 to $30.08.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.08.

 

U.S. Stock Movers

Boeing declined 2.5% to $158.80 after the workers union rejected the latest agreement with the company and decided to strike. 

RH soared 19% to $305.0, and the furniture retailer reported better-than-expected quarterly results. 

Net revenue increased 3.6% to $830 million, net income declined to $28.9 million from $76.4 million, and diluted earnings per share were $1.57 from $3.65. 

The company estimated revenue to increase between 7% and 9% in the third quarter and adjusted its operating earnings margin between 15% and 16%. 

Adobe declined 8.9% to $534.44, and the software company reported better-than-expected fiscal third quarter results. 

Adobe reported revenue in the quarter increased to $5.41 billion and adjusted earnings per share of $4.65. 

Revenue increased 11% to $5.41 billion, net income advanced to $1.7 billion compared to $1.4 billion, and diluted earnings rose to $3.76 from $3.05 from a year ago.