Traders work on the floor of the New York Stock Exchange during morning trading on November 1, 2023 in New York City. Stocks opened slightly higher amid Federal Reserve Chair Jerome Powell's press conference and an interest rate decision.
Miguel M. Santiago | fake images
Stocks rose Thursday as Treasury yields fell, and investors bet the Federal Reserve could raise rates by 2023.
He Dow Jones Industrial Average traded 393 points higher, or 1.2%, rising steadily throughout the session as yields fell. The Dow Jones has risen more than 580 points in two days. He S&P 500 and Nasdaq Composite they rose 1.5% and 1.4%, respectively. The S&P 500 and Dow are on track for their biggest weekly gain of the year.
Dow, 1 day
The rally was broad-based, with all 11 S&P 500 sectors trading in positive territory. Gains were led by real estate and consumer discretionary, two sectors hit hard earlier in the year amid concerns about higher rates.
Bond yields declined, with the 10-year Treasury yield falling about 14 basis points to 4.65%. This comes after the benchmark yield surpassed 5% last month.
Data released Thursday morning showed declining inflation and a slowdown in the labor market, boosting investor confidence that the Federal Reserve could succeed in raising rates. Labor costs unexpectedly fell in the third quarter, the Labor Department said Thursday. And Thursday's weekly jobless claims rose to 217,000.
10-Year, 1-Day Treasury Yield
On Wednesday, the Federal Reserve kept interest rates unchanged for the second time in a row, triggering a rally in the dow of more than 200 points. He S&P 500 and Nasdaq Composite each finished with more than 1%.
"There's a little bit of follow-up from yesterday, and then this morning, we got some of the productivity and unit labor cost numbers, and the unit labor cost numbers are actually negative," said Megan Horneman, chief investment officer at Verdence Capital. Advisors. "That adds to some relief that we may be getting some of that sticky inflation under control that the Fed has been talking about."
Horneman is certainly concerned that investors may be too optimistic, as Chairman Jerome Powell signaled Wednesday that he wouldn't rule out a rate hike at the December meeting.
"I think there is still volatility that we will see in inflation," Horneman said. "The only thing that worries us is that inflation is extremely easy to reignite."
tesla and Nvidia led tech stocks' gain on Thursday as investors cheered falling rates. Apple added nearly 2% ahead of its earnings report after the bell.
