Wall Street: Treasuries Boost

Wall Street experienced gains on Tuesday, with stocks climbing due to the continued decline in Treasury yields. The S&P 500 index recorded its seventh consecutive day of gains, marking its longest winning streak since November 2021 when it rose for eight consecutive sessions. The Nasdaq Composite also achieved its lengthiest string of gains since that period.

The Dow increased by 57 points, equivalent to 0.2%. The S&P 500 saw a gain of 0.3%, while the Nasdaq Composite added 0.9%.

The 10-year Treasury note yield, which had surged to 5% in late October, its highest level in over a decade, has started to pull back. This trend continued on Tuesday as investors closely examined statements from several Federal Reserve officials. Chicago Fed President Austan Goolsbee stated on CNBC that he believes it’s possible for inflation to decrease without causing a recession.

In recent weeks, yields have pulled back following the Federal Reserve’s interest rate pause in November and a labor report that was softer than expected. This development has boosted Wall Street ‘s belief that the central bank has finished raising rates, contributing to this month’s stock market rally. In October, the S&P 500 experienced its longest streak of monthly declines since 2020. On Tuesday, the 10-year Treasury yield was at 4.57%, compared to Monday’s close of 4.66%.

Wall Street — “After surging in late October to touch 5%, its highest level in over a decade, the yield on the 10-year Treasury note has started to pull back.” Source/ Internet.

The drop in yields had a positive impact on tech stocks. Microsoft shares reached a new record high, rising 1.1% to $360.53. Amazon shares gained 2.1%, Meta Platforms increased by 1%, and Apple climbed by 1.4%.

However, oil prices declined on Tuesday following data indicating a more substantial-than-expected year-on-year decline in China’s exports last month. West Texas Intermediate crude futures, the U.S. benchmark, settled at $77.37 a barrel.

Energy stocks were among the losers, with Halliburton shares down by 4%, Chevron declining by 1.8%, and ExxonMobil losing 1.6%.

Uber shares increased by 3.7% after the ride-hailing company reported third-quarter earnings and revenue misses but provided fourth-quarter gross bookings guidance above analyst expectations.

Datadog shares jumped by 28.5% after the company reported third-quarter results that beat expectations and raised its full-year outlook.

Investors are keenly awaiting comments from Fed Chair Jerome Powell, scheduled to be delivered on Wednesday and Thursday.