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Wall Street ended sharply higher on Thursday, driven by positive economic data that boosted investor confidence. Market participants are speculating that the Fed’s aggressive rate-hike cycle may have come to an end. Treasury yields fell on inflation numbers cooling down. All three major stock indexes ended in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.7% or 564.5 points to close at 33,839.08. Notably, 28 components of the 30-stock index ended in positive territory, while 1 finished in negative zone and 1 remained unchanged.
The tech-heavy Nasdaq added 232.72 points or 1.8% to close at 13,294.19.
The S&P 500 climbed 1.9% or 79.92 points to end at 4,317.78. All 11 broad sectors of the benchmark ended in positive territory. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE), the Consumer Discretionary Select Sector SPDR (XLY), the Financials Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) rose 3%, 3.1%, 2.6%, 2.4%, and 2.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.2% to 15.66. A total of 11.96 billion shares were traded on Thursday, higher than the last 20-session average of 10.78 billion. Advancing issues outnumbered the declining ones on the NYSE by a 7.30-to-1 ratio. On the Nasdaq, a 3.16-to-1 ratio favored advancers. The S&P 500 posted 10 new 52-week highs and 9 new 52-week lows. The Nasdaq Composite registered 40 new 52-week highs and 140 new 52-week lows.
Rate Hikes Nearing the Finish Line
At the conclusion of the November FOMC meeting on Wednesday, the Federal Reserve decided not to change interest rate. Fed Chair Jerome Powell had said that the central bank will monitor the labor market data to analyze whether the financial situation is tight enough to control inflation. The upbeat mood seen in the stock market on Thursday shows investors being hopeful that the slew of economic data being released currently would deter the Fed from reverting to its aggressive policy tightening measures in the near future.
The S&P 500 achieved its largest single-day percentage gain since April and closed above its 200-day moving average for the first time since Oct 24, while the Nasdaq experienced its most significant one-day percentage increase since Jul 28, marking its fifth consecutive day of gains. The probability of a December interest rate increase dropped to 14.6%, as indicated by the CME Group's Fed Watch Tool, after recently released economic data showed that the economy remains resilient and inflation is on a downward curve. This resulted in a widespread surge in the stock market on Thursday. However, treasury yields fell 12 basis points to 4.668% after rising to more than 5% last month, indicating that inflation concerns are easing.
The Labor Department said on Thursday that initial jobless claims rose to 217,000, increasing 5,000 for the week ending Oct 28 from the previous week. The previous week's level was revised up by 2,000 from 210,000 to 212,000. The four-week moving average increased to 210,000, marking a rise of 2,000 from the previous week. The previous week's average was revised up by 500 from 207,500 to 208,000.
Continuing claims came in at 1,818,000 for the week ending Oct 21, increasing 35,000 from the previous week’s revised level. The previous week's numbers were revised down by 7,000 from 1,790,000 to 1,783,000. The four-week moving average was 1,758,250, an increase of 36,500 from the previous week's revised average. The previous week's average was revised down by 1,750 from 1,723,500 to 1,721,750.
Nonfarm productivity in third-quarter 2023 was revised upward to 4.7% from 3.6% reported earlier. Unit labor costs decreased by 0.8% in Q3 from the revised estimate of 3.2% in Q2.
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Stock Market News for Nov 03, 2023
Market News
Wall Street ended sharply higher on Thursday, driven by positive economic data that boosted investor confidence. Market participants are speculating that the Fed’s aggressive rate-hike cycle may have come to an end. Treasury yields fell on inflation numbers cooling down. All three major stock indexes ended in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.7% or 564.5 points to close at 33,839.08. Notably, 28 components of the 30-stock index ended in positive territory, while 1 finished in negative zone and 1 remained unchanged.
The tech-heavy Nasdaq added 232.72 points or 1.8% to close at 13,294.19.
The S&P 500 climbed 1.9% or 79.92 points to end at 4,317.78. All 11 broad sectors of the benchmark ended in positive territory. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE), the Consumer Discretionary Select Sector SPDR (XLY), the Financials Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) rose 3%, 3.1%, 2.6%, 2.4%, and 2.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.2% to 15.66. A total of 11.96 billion shares were traded on Thursday, higher than the last 20-session average of 10.78 billion. Advancing issues outnumbered the declining ones on the NYSE by a 7.30-to-1 ratio. On the Nasdaq, a 3.16-to-1 ratio favored advancers. The S&P 500 posted 10 new 52-week highs and 9 new 52-week lows. The Nasdaq Composite registered 40 new 52-week highs and 140 new 52-week lows.
Rate Hikes Nearing the Finish Line
At the conclusion of the November FOMC meeting on Wednesday, the Federal Reserve decided not to change interest rate. Fed Chair Jerome Powell had said that the central bank will monitor the labor market data to analyze whether the financial situation is tight enough to control inflation. The upbeat mood seen in the stock market on Thursday shows investors being hopeful that the slew of economic data being released currently would deter the Fed from reverting to its aggressive policy tightening measures in the near future.
The S&P 500 achieved its largest single-day percentage gain since April and closed above its 200-day moving average for the first time since Oct 24, while the Nasdaq experienced its most significant one-day percentage increase since Jul 28, marking its fifth consecutive day of gains. The probability of a December interest rate increase dropped to 14.6%, as indicated by the CME Group's Fed Watch Tool, after recently released economic data showed that the economy remains resilient and inflation is on a downward curve. This resulted in a widespread surge in the stock market on Thursday. However, treasury yields fell 12 basis points to 4.668% after rising to more than 5% last month, indicating that inflation concerns are easing.
Consequently, shares of Targa Resources Corp. (TRGP - Free Report) and Hess Corporation (HES - Free Report) rose 7.3% and 3.9%, respectively. Hess Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Labor Department said on Thursday that initial jobless claims rose to 217,000, increasing 5,000 for the week ending Oct 28 from the previous week. The previous week's level was revised up by 2,000 from 210,000 to 212,000. The four-week moving average increased to 210,000, marking a rise of 2,000 from the previous week. The previous week's average was revised up by 500 from 207,500 to 208,000.
Continuing claims came in at 1,818,000 for the week ending Oct 21, increasing 35,000 from the previous week’s revised level. The previous week's numbers were revised down by 7,000 from 1,790,000 to 1,783,000. The four-week moving average was 1,758,250, an increase of 36,500 from the previous week's revised average. The previous week's average was revised down by 1,750 from 1,723,500 to 1,721,750.
Nonfarm productivity in third-quarter 2023 was revised upward to 4.7% from 3.6% reported earlier. Unit labor costs decreased by 0.8% in Q3 from the revised estimate of 3.2% in Q2.