Wall Street's most valuable companies rose as Treasury yields fell to multi-month lows. Nvidia (NVDA.O) and Apple (A`L.O) rose more than 2%, while Amazon.com (AMZN.O) and Tesla (TSLA.O) rose more than 1%.
Wall Street ended mixed on Tuesday after new employment data confirmed speculation that the Federal Reserve will cut interest rates as early as March.
Wall Street's most valuable companies rose as Treasury yields fell to multi-month lows. Nvidia (NVDA.O) and Apple (A`L.O) rose more than 2%, while Amazon.com (AMZN.O) and Tesla (TSLA.O) rose more than 1%.
Most S&P 500 sector indexes ended in the red after data showed U.S. job openings fell to their lowest level since early 2021 in October, suggesting the labor market is easing.
“As interest rates rise and demand weakens, companies are restricting job openings, which is essentially what the Fed wants,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“The Fed is probably done raising rates, and the only open question is when it will start cutting,” Stovall said.
Another report showed that activity in the U.S. services sector increased in November.
The S&P 500 fell 0.06% to end the session at 4,567.18 points.
The Nasdaq gained 0.31% to 14,229.91 points, while the Dow Jones Industrial Average fell 0.22% to 36,124.56 points.
The small-cap Russell 2000 index (.RUT) fell 1.4%, ending a four-day winning streak.
Volume on U.S. exchanges was relatively high, with 11.9 billion shares traded, compared with an average of 10.6 billion shares over the past 20 sessions.
Of the 11 S&P 500 sector indexes, eight fell, led by Energy (.SPNY) with a 1.7% decline, followed by a 1.37% loss in Materials.
U.S. stock trading was mixed this week after the S&P 500 rose nearly 9% in November. The index hit a four-month intraday high on Friday.
Stock market investors widely expect the Fed to leave interest rates unchanged at its meeting next week. Interest rate futures also indicate a 65 percent chance of a rate cut by the Fed's March meeting, according to CME Group's FedWatch tool.
On Friday, the broader nonfarm payrolls report for November will provide more clarity on the state of the labor market.
Global markets will see greater volatility in 2024 as the Fed cuts interest rates less often than futures markets are pricing in, BlackRock Investment Institute strategists predicted in a panel discussion. Take-Two Interactive Software (TTWO.O) fell 0.5% after releasing a trailer for the latest installment in its best-selling video game series, “Grand Theft Auto.”
CVS Health (CVS.N) jumped 3.7% after forecasting 2024 revenue above Wall Street estimates as the insurer looks to capitalize on its expansion into the health care sector.
In the S&P 500 (.AD.SPX), falling stocks outnumbered rising ones by a ratio of 4.5 to one.
The S&P 500 recorded 15 new highs and no new lows; The Nasdaq recorded 83 new highs and 69 new lows.
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