2023-11-02 21:09:46
U.S. Stock Diary | The three indexes hit their best performance in months as interest rate hike speculation ends (Spencer Platt via Getty Images)
Wall Street stocks rose across the board, with the Dow rising more than 500 points, its largest one-day gain since June, and both the S&P 500 and Nasdaq having their best single-day performances since April and July. The Federal Reserve once again kept interest rates unchanged on Wednesday. U.S. Treasury bond rates fell across the board on Thursday, with the 10-year bond interest rate falling by 12 points, stimulating the stock market. Apple, which announced results after the market closed on Thursday, slightly beat market expectations and fell as much as 2% during the extended trading session.
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Market conditions on November 2 (Thursday)
l The Dow Jones index rose 564.50 points, or 1.70%, to 33,839.08 points.
l The S&P 500 index rose 79.92 points, or 1.89%, to 4,317.78 points.
l The Nasdaq index rose 232.72 points, or 1.78%, to 13,294.19 points.
l New York oil futures for December delivery closed at US$82.46 a barrel, up US$2.02 or 2.5%.
l New York December gold futures closed at $1,993.50 an ounce, up 0.3%. It closed above the $2,000 mark for the first time since late July.
l The U.S. 10-year Treasury bond yield closed at 4.669%, down 12 points.
The Dow Jones rose 564 points, its largest one-day gain since June, and the S&P 500 rose 1.9%, its largest one-day gain since April. The Nasdaq rose about 1.8%, its largest one-day gain since July.
Technology giant Apple announced its results after the market closed on Thursday, and its stock price rose 2% at the close. The company’s revenue and profit were slightly better than market expectations, and it fell about 2% during the extended trading session after the market closed.
The rest of the seven technology giants rose across the board except Meta, which fell slightly. Tesla, which has fallen sharply since the results, rose 6.3% on Thursday.
From the beginning of this week to Thursday, 29 of the 30 components of the Dow Jones Industrial Average recorded gains, with Goldman Sachs, the largest gainer, rising by more than 8% since the beginning of the week. Nike, Verizon and Boeing also rose more than 7% each.
The decline in U.S. Treasury bond interest rates led to a positive performance in the stock market, with the 10-year bond interest rate falling by about 12 basis points to 4.674%.
Franklin Templeton said fixed income investment director Sonal Desai said the high of U.S. Treasury yields may be around 5.25%, but not much higher. Even that level will require some data on inflation and employment growth. It can only be achieved by accidentally becoming stronger. However, there is no need for investors to rush in as the market is likely to remain volatile for some time.
The day before, Federal Reserve Chairman Powell mentioned that the rise in bond market interest rates has tightened financial conditions. He also pointed out that the applicability of officials’ interest rate forecasts (i.e. dot plots) in September has decreased over time. The market interpreted that there is a chance that interest rates will not be raised again. .
Dudley, the former president of the Federal Reserve Bank of New York, said: “I think the consequence of Powell’s market-friendly communication method is that the financial environment is relaxed. It is the restrictive nature of interest rates that reduces the need for the Fed to further tighten policy. Now his words have weakened the restrictions.”
Former Fed Vice Chairman Richard Clarida said the challenge of adding the term “financial conditions” to the latest statement is that markets will fluctuate, and officials may regret focusing too much on volatile market data.
In terms of data, the U.S. Department of Labor said labor costs unexpectedly fell in the third quarter, while new weekly unemployment claims rose to 217,000, higher than expected.
The increase in U.S. factory orders in September exceeded economists’ expectations. Factory orders in September jumped 2.8% again after increasing by 1% in August, which was the largest monthly increase since July 2020. The main reason was due to strong demand for computers and electronic products. However, rising borrowing costs remain a challenge for the manufacturing industry.
The data reflected a slowdown in inflation and easing labor market pressures, boosting investors’ confidence that the interest rate hike cycle is over.
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